The privacy coin sector witnessed a dramatic divergence in late November 2025, with Monero (XMR) and Zcash (ZEC) moving in opposite directions. This split was far from random; it highlighted a significant market rotation driven by the coins’ contrasting approaches to privacy and their resulting ability to withstand an increasingly strict regulatory climate.
A Tale of Two Privacy Coins
The week presented a stark contrast in performance. Monero demonstrated strength, with its price rising from around $327 in mid-October to approximately $406 by November 28, reflecting a period of significant upward momentum. Conversely, Zcash experienced a sharp correction, dropping from a peak near $735 in mid-November to about $466 by November 28. This 25% weekly decline for ZEC came after a parabolic 700% rally earlier in the year, signaling a classic market rotation where traders took profits from high-flyers and moved capital into assets perceived as having untapped potential. The situation underscored a market reassessing the very value of privacy, weighing the appeal of absolute anonymity against the practical need for regulatory compliance.
Privacy by Default vs. Privacy by Choice
The core of this divergence lies in the fundamental technological and philosophical differences between the two assets. Monero is built for “extreme privacy” by default, using ring signatures and stealth addresses to obscure sender, receiver, and amount in every transaction. This design makes it a powerful tool for censorship-resistant payments but also paints a target on its back for regulators worldwide.
Zcash, on the other hand, employs zk-SNARKs to offer optional privacy. Users can choose between transparent transactions, which are visible on the blockchain, and shielded transactions that conceal details. This flexibility to provide selective disclosure through viewing keys is seen as a critical compliance bridge, making Zcash more palatable to institutions and exchanges.
The Mounting Regulatory Storm
This difference in privacy models has had direct and severe consequences for market access. Global regulators are cracking down hard on anonymity-enhancing technologies. The European Union’s new AML package is set to ban anonymous crypto accounts, effectively forcing exchanges to delist privacy coins. This has already played out, with major exchanges like Kraken delisting Monero in 2024, and Binance signaling it may remove Zcash to comply with incoming EU laws.
Monero’s default privacy has made it the primary casualty of this crackdown, leading to devastating liquidity fragmentation as it vanishes from regulated centralized exchanges. Zcash’s optional privacy has, so far, provided a layer of defense, allowing it to maintain listings on major platforms and thus offering greater liquidity and access for institutional players. The recent price movements suggest the market is acutely aware of this distinction, punishing assets with existential regulatory risk and rewarding those with a potential path to compliance.
Navigating the Future of Private Transactions
For traders and investors, the divergence between Monero and Zcash is a case study in balancing technological purity with real-world viability. Monero remains the gold standard for pure, fungible digital cash but operates under a cloud of regulatory uncertainty that suppresses its price and limits its accessibility. Zcash offers a compromise, attempting to satisfy both the desire for privacy and the demands of regulators, though this very compromise leads to debates about its long-term privacy value.
The phased implementation of regulations like the EU’s MiCA framework toward 2027 will be the next major milestone, further defining the boundaries of what is permissible and likely accelerating the sector-wide rotation we are now witnessing. In this new era, the survival and success of a privacy coin may depend less on the strength of its cryptography and more on its ability to navigate the complex world of compliance.
