Simply put
- Monero has seen a 23% increase in value over the last week, whereas Zcash, another privacy coin, has experienced a decline of nearly the same percentage.
- Zano strategists suggest that this disparity is due to “positioning, leverage, and timing,” rather than a shift in demand for privacy.
- The privacy coin market as a whole is down almost 40% this week, making Monero’s rise quite an exception.
The privacy-focused cryptocurrency Monero has surged more than 23% in the past week, contrasting sharply with Zcash, which has dropped about 25% during the same timeframe.
Both of these coins are known for their volatility; currently, Monero is trading around $406, while Zcash sits at approximately $480, according to CoinGecko data.
What is driving this dynamic?
The ongoing narrative surrounding privacy coins plays a crucial role in the fluctuating performances of Zcash, Monero, Dash, and similar tokens. Generally, these altcoins seem less influenced by broader market uncertainties.
The current scenario, where Zcash is experiencing significant losses while Monero enjoys gains, appears to be linked to capital redistribution within the privacy coin market.
Quinten van Welzen, who heads strategy and communications at Zano, mentioned that “privacy meta is gaining popularity, and both Monero and Zcash are reaping some of the benefits.” He adds that the short-term shifts—like Zcash’s decline contrasted with Monero’s rise—are likely more about market positioning and timing than any fundamental change in privacy needs.
However, it’s worth noting that not all privacy coins are the same.
Currently, the privacy coin category has declined 3.8% within the last 24 hours and nearly 40% over the past week. Monero stands out as the only top performer with a 4.1% increase today, while both Zcash and Dash have fallen by 4.4% and 7.3%, respectively.
Looking more closely at the recent trends, Monero’s movement has been primarily influenced by the futures market. There’s been sustained selling pressure in the total spot bid delta, though there remains some positive momentum in the persistent bid delta.
This is further supported by examining the spot and cumulative volume delta, which reflects the difference between total buy and sell prices. Spot CVD has remained stable, while futures CVD is on an upward trend.
With an increase in open interest—essentially the total of all open futures contracts—this activity seems driven more by speculative futures trading than by spot purchasing.
Typically, large surges led by futures trading are considered weak if not supported by real buying activity. This suggests that Monero’s recent growth might falter if traders decide to pull back on their positions, possibly reallocating profits to Zcash, Dash, or other well-known privacy cryptocurrencies.
