Privacy coins have emerged as one in all the dominant narratives shaping cryptocurrency investment trends this yr. The two leading altcoins on this sector by volume and market capitalization are Zcash (ZEC) and Monero (XMR).
Investor attention has been heavily focused on ZEC. Meanwhile, XMR continues to experience strong and regular growth.
XMR outperforms ZEC in some ways despite not being within the highlight
In terms of day by day spot trading volume in December, ZEC performed exceptionally well.
According to CoinGecko, ZEC maintains a day by day trading volume of just about $1 billion. This level surpasses XMR and DASH, because of strong liquidity on major exchanges like Binance.
However, ZEC falls far behind in day by day on-chain transactions. Data from BitInfoCharts shows that XMR averages around 26,000 transactions per day. This number is greater than 3 times the ZEC average of around 8,000 transactions per day.
Zcash, Monero Daily Transactions. Source: BitInfoCharts
The chart also shows that XMR’s on-chain activity stays constant over the long run. This trend reflects stable user behavior. In contrast, ZEC's recent rise and sharp decline seem more like a short lived excitement.
On-chain activity matters long term than spot volume. It reflects real-world usage patterns and user adoption of XMR for anonymous transfers, slightly than short-term trading sentiment.
Additionally, the value of ZEC fluctuates as a result of increased volatility as a result of speculative trading. XMR price motion stays more stable.
TradingView data shows that ZEC has fallen by greater than 40% within the last month. Many analysts now suspect the potential for a bubble pattern. Meanwhile, XMR fell by around 12%.
Price performance comparison between ZEC and XMR. Source: TradingView
From this angle, ZEC is suitable for traders who follow the privacy coin narrative and seek quick profits during extreme FOMO cycles. The downside is bigger price declines and longer recovery phases.
Additionally, the most recent report from MEXC Research strengthens XMR’s position. Over longer time periods, XMR has superior trading volume and user activity in comparison with ZEC and DASH.
“Although ZEC and DASH are seeing record-breaking trading volumes, Monero stays an asset of selection amongst privacy coin traders, accounting for 93% of total trading volume and 72% of users on this segment within the third to fourth quarters,” MEXC Research reported.
The report also notes that the growing interest in privacy assets reflects users' increasing need for anonymity as regulators tighten capital controls.
Therefore, no matter whether or not they hold ZEC or XMR, investors can proceed to learn next yr. Experts assume that privacy coins will remain a dominant market narrative in 2026.
The post “Zcash leads within the hype – but Monero (XMR) quietly dominates where it counts” appeared first on BeInCrypto.
Article source: beincrypto.com
The post “Zcash leads within the hype – but Monero (XMR) quietly dominates where it counts” appeared first on Crypto Adventure.
