Is the privacy coin landscape changing? The Zcash core development team has left, and Monero XMR makes a strong comeback

ZEC2,08%

Entering 2026, there is a clear differentiation in the privacy cryptocurrency sector. Following the sudden collective resignation of the Zcash core development team, market confidence quickly wavered, and funds began to concentrate into more mature privacy assets, allowing Monero (XMR) to reclaim its position as the highest market cap privacy cryptocurrency.

As of recent, Monero’s price has remained around $460, approaching the $490 peak reached in December 2025. XMR has been strengthening for several consecutive weeks, outperforming most other privacy-focused digital assets. This trend stands in stark contrast to the generally optimistic market outlook for ZEC in the latter half of 2025.

The direct trigger for this shift in the landscape stems from Electric Coin Company (ECC), the core development organization behind Zcash. On Thursday, ECC announced the collective resignation of its entire team. CEO Josh Swihart described this event as a “constructive dismissal” at the board level, stating that the new governance arrangements had weakened the team’s independence. Subsequently, former developers chose to start anew, establishing a new company to continue advancing related technologies.

Following the announcement, ZEC’s price dropped by about 15% on the same day. Although there was a slight rebound afterward, the overall trend continued the correction since the November high. On-chain data also reflected market tension. Nansen data shows that within 24 hours of the announcement, ZEC inflows to exchanges increased significantly, with exchange balances growing by about 7%, typically seen as a sign of potential selling pressure.

Meanwhile, funds did not exit the privacy sector entirely but experienced a clear internal rotation. Zcash’s Chaikin fund flow indicator turned negative, indicating continued net outflows; in contrast, Monero’s similar indicator rapidly increased, reflecting funds moving toward XMR. During the period when ZEC fell about 16%, XMR instead rose approximately 5%, widening the market cap gap between the two.

From a technical and market structure perspective, Monero’s advantages are being amplified again. Its higher degree of decentralization, more mature privacy mechanisms, and the absence of a core development governance crisis over the long term all contribute to its strength. The Money Flow Index (MFI) has also risen sharply, indicating increasing buying sentiment.

Currently, Monero’s price is still about 13% below its all-time high of $518.99, but against the backdrop of renewed privacy narratives, market recognition of its positioning is rebounding. Multiple perspectives, including the crypto research team under Andreessen Horowitz, believe that privacy will become a key differentiator in blockchain competition in 2026.

As Zcash needs time to repair governance and development uncertainties, Monero’s dominant position in the privacy cryptocurrency field is becoming more solid in the short term.

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K-lineHuntervip
· 01-12 18:33
2026 Go Go Go 👊
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SesameFuxianvip
· 01-12 14:41
Just go for it!
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SesameFuxianvip
· 01-12 14:41
Just go for it!
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