As Zcash‘s dramatic run-up earlier in 2025 pushed its market capitalization past that of Monero, traders have increasingly rotated profits from ZEC into XMR, seeking exposure to a different privacy profile and anticipated liquidity improvements. Market data shows ZEC surged roughly 180% in one month, with prices climbing into the $466–$600 range and market capitalization expanding to about $7.2–$8.68 billion, overtaking Monero’s roughly $6.3–$6.4 billion; this re-pricing revived attention on privacy coins broadly and created a narrative pathway for profit-taking and reallocation. Monero has not lagged in momentum, breaking resistance at $428 and reaching highs near $470, up about 365% from 2024 lows, and its trend has attracted directional flows that complemented Zcash’s breakout. Trading mechanics underscore the rotation, as conversion rates between the two assets fluctuate around 1 ZEC ≈ 0.155 XMR and 1 XMR ≈ 6.44 ZEC, with larger volumes scaling linearly and amplifying market impact; ZEC’s trading volume surged alongside its price breakout, while Monero’s futures open interest expanded markedly, rising to roughly $68 million from $10 million, signaling growing institutional and retail participation. Derivative dynamics also reveal bullish positioning, with high short liquidations near $1.9 million and rising funding rates on XMR futures, which collectively point to heightened leverage and the possibility of rapid reversals, a risk market participants should monitor. Fundamental and regulatory distinctions help explain preferences, as Monero enforces full-time, default encrypted transactions that appeal to users prioritizing uncompromised privacy, whereas Zcash’s optional shielded mode offers institutional-friendly flexibility and greater prospects for exchange listing, factors that have allowed ZEC wider acceptance in certain venues. These differences also highlight the ongoing regulatory challenges that privacy coins face globally. Reports of anticipated relistings of Monero on major exchanges have further encouraged rotation, as improved exchange access would likely boost liquidity and lower trading frictions. Observers caution that privacy coin markets remain sensitive to regulatory shifts and technical updates, and while recent developments have propelled gains, the combination of concentrated positions, volatile funding conditions, and policy uncertainty warrants prudent risk management. The live converter currently shows 1 ZEC = 1.62 XMR, based on aggregated exchange data updated today. Recent on-chain metrics also indicate increased trader inflows into XMR wallets over the past two weeks.
