Privacy coins have emerged as one of the dominant narratives shaping cryptocurrency investment trends this year. The two leading altcoins in this sector by volume and market capitalization are Zcash (ZEC) and Monero (XMR).
Investor attention has focused heavily on ZEC. Meanwhile, XMR continues to show strong and steady growth.
XMR Outperforms ZEC in Many Aspects Despite Lacking the Spotlight
In terms of daily spot trading volume in December, ZEC performed exceptionally well.
According to CoinGecko, ZEC maintains a daily trading volume of nearly $1 billion. This level surpasses XMR and DASH, thanks to strong liquidity on major exchanges like Binance.
However, ZEC falls far behind in daily on-chain transactions. Data from BitInfoCharts shows XMR reaching an average of about 26,000 transactions per day. This figure is more than triple ZEC’s average of roughly 8,000 transactions per day.
Zcash, Monero Daily Transactions. Source: BitInfoCharts
The chart also indicates that XMR’s on-chain activity remains consistent over the long term. This trend reflects stable user behavior. In contrast, ZEC’s recent surge and sharp decline appear more like temporary excitement.
On-chain activity carries longer-term significance than spot volume. It reflects real usage patterns and user acceptance of XMR for anonymous transfers rather than short-term trading sentiment.
Additionally, ZEC’s price fluctuates due to increased volatility resulting from speculative trading. XMR’s price movement remains more stable.
TradingView data shows that ZEC has fallen by more than 40% over the past month. Many analysts now suggest the possibility of a bubble pattern. Meanwhile, XMR declined by roughly 12%.
Comparing The Price Performance Between ZEC and XMR. Source: TradingView
From this perspective, ZEC suits traders who chase the privacy coin narrative and aim for quick profits during extreme FOMO cycles. The downside is deeper price drops and longer recovery periods.
Furthermore, the latest report from MEXC Research reinforces XMR’s position. Over longer timeframes, XMR demonstrates superior trading volume and user activity compared to ZEC and DASH.
“Despite ZEC and DASH posting record-high trading volumes, Monero remains an asset of choice among privacy coin traders, accounting for 93% of total trading volume in Q3–Q4 and 72% of users in this segment,” MEXC Research reported.
The report also notes that growing interest in privacy assets reflects users’ increasing need for anonymity as regulators strengthen capital controls.
Therefore, regardless of holding ZEC or XMR, investors can continue to benefit next year. Experts predict privacy coins will remain a dominant market narrative in 2026.
