Zcash (ZEC) has marked a historic milestone by surpassing Monero (XMR) in market capitalization. This event could signify a changing of the guard in the privacy-focused cryptocurrency sector. Zcash’s optional privacy model appears to be a key factor in this ascent, according to experts like Ray Youssef, CEO of NoOnes. ZEC has surged nearly 50% in just seven days.
ZEC’s capitalization flipped XMR’s for the first time last Friday. It managed to stay above its older peer for several hours. ZEC reached a peak valuation of $7.2 billion. Meanwhile, XMR remained around $6.3 billion. Although traders cite technical catalysts, like the upcoming November block-reward halving, fundamentals are crucial. Trading volume soared, breaking long-term technical resistance.
The key differentiating factor lies in Zcash’s optional privacy model. This project, started in 2016, allows users to choose between transparent or shielded (private) transactions. On the other hand, Monero, introduced in 2014, lacks this flexibility. This duality might be helping ZEC gain institutional support. Entities are seeking privacy without the regulatory baggage weighing on XMR, which remains delisted from several major exchanges.
Are we witnessing the end of “toxic anonymity” for regulators?
Ray Youssef, CEO of the P2P app NoOnes, explained this dynamic in an interview. “Unlike Monero… zcash offers flexibility,” he stated. This capability allows institutions to maintain compliance and reporting. Youssef considers ZEC “a regulatory-acceptable asset.” Conversely, XMR remains toxic from an AML (Anti-Money Laundering) and KYC (Know Your Customer) compliance perspective. Furthermore, the Zashi CrossPay protocol positions Zcash as a potential privacy layer for broader networks like Bitcoin and Ethereum.
ZEC’s recent performance is part of a much larger bullish trend. Zcash’s price jumped nearly 1,000% in the last three months. In contrast, Monero only advanced 11.5% during the same period. Likewise, the influence of industry figures like analyst Arthur Hayes should not be underestimated. The commentator has predicted Zcash will reach $10,000 per coin, generating notable excitement in the market.
