Privacy coin sector reshuffle: The capital rotation behind XMR's 23% daily surge

Monero (XMR) surged strongly by 23.49% in the past 24 hours, currently trading at $585.48, with a market capitalization surpassing $10.8 billion. This is not just a simple price increase but also reflects a deep structural adjustment in the privacy coin sector. Capital is flowing from Zcash (ZEC), which is facing governance crises, to the more stable governance of Monero. This rotation effect is reshaping the competitive landscape of the entire privacy coin ecosystem.

24-Hour Price Fluctuation Overview

Major Capital Shift in Privacy Coin Sector

Chain Reaction Triggered by ZEC Crisis

According to the latest news, the Electric Coin Company, the core development team behind Zcash, experienced a large-scale departure event, which directly impacted market confidence. ZEC’s price dropped about 15% in response, and on-chain data shows a roughly 7% increase in exchange inflows, indicating that investors are starting to withdraw. However, the key point is that capital has not completely exited the privacy coin sector but is instead rotating internally.

XMR Becomes a Safe Haven for Funds

In contrast, XMR’s performance is markedly different. Data shows that during the same period when ZEC declined about 16%, XMR actually increased by approximately 5%. More importantly, the Chaikin Capital Flow indicator for XMR is rising rapidly, reflecting a large influx of funds into Monero. The market cap gap between the two has widened accordingly, and this 23.49% surge is a concentrated reflection of this capital rotation effect.

Why Does XMR Win Market Favor

Fundamental Differences in Governance Structure

Technical and Application Foundations

Compared to ZEC, XMR offers higher decentralization and more mature privacy mechanisms. This is not only a technical advantage but also a reflection of market confidence. When ZEC’s governance model exposes risks, investors naturally shift to more structurally stable alternatives.

Additionally, XMR functions as a true currency tool with extremely low transaction fees, giving it practical advantages in goods, services, and currency exchange. Continuous investment from professional institutions like the Monero Research Lab also ensures the project’s long-term technical vitality.

Revaluation of Privacy Coin Value

Changes in Global Regulatory Environment

In the context of increasingly complex global privacy regulations, Monero’s recognized privacy features are being reappraised. This is not just hype but a market re-pricing of privacy assets under new regulatory conditions.

Market Performance as Evidence

Data shows that XMR increased by 122% throughout 2025, far outperforming Bitcoin, which declined by 5% in the same period. This indicates that the privacy coin sector is regaining market attention, and as the most stable governance and mature technology project in the sector, XMR naturally becomes the preferred choice for capital.

Future Outlook

Based on current capital rotation trends and the reassessment of governance structures, XMR is likely to continue benefiting from the sector’s valuation re-evaluation. Especially with ZEC’s governance crisis not yet fully resolved, this asymmetric capital flow could further enhance XMR’s competitive advantage.

However, market volatility remains a concern. Although the price surged from $430.96 to $588.72 within 24 hours, such large swings also indicate heightened market sentiment volatility, and investors should be cautious of short-term price manipulation risks.

Summary

XMR’s 23.49% increase is more than just a number; it signifies a reshaping of the privacy coin sector landscape. ZEC’s governance crisis has prompted a reevaluation of privacy projects, with investors voting with their feet, shifting funds toward projects with more stable governance and mature technology. This market behavior reflects that, in cryptocurrency investing, governance structure and technical foundation are equally important, sometimes even more so than short-term price performance in determining long-term prospects. The reshuffle in the privacy coin sector has just begun, and ongoing developments in the landscape warrant continuous attention.