The privacy-focused cryptocurrency sector is witnessing a dramatic shift in fortunes. Zcash (ZEC) is facing a deepening crisis following the departure of its core developer team, which has sparked severe governance concerns and a sharp price decline. Analyst Crypto Bitlord issued a stark warning, labeling the act of holding ZEC as "portfolio suicide" and suggesting the project could be vulnerable to a major exploit. The token's value fell at least 20% in the wake of the team's exit to launch a new startup.
While a broader market rally has provided some temporary support, with short-term projections hinting at a potential rebound toward $450, the long-term outlook remains clouded by leadership gaps and investor skepticism. This instability has directly benefited its main rival, Monero (XMR).
In a stark contrast, Monero has surged by 44% over the past eight days, reaching a new all-time high. According to on-chain analytics firm Santiment, this rally is fueled by significant crowd FOMO (fear of missing out), elevated social volume, and growing investor interest. The surge solidifies Monero's position as the dominant privacy coin, overtaking Zcash which has struggled to keep pace.
Analysts point to Monero's fundamental strengths—privacy by default, consistent development, and strong community support—as key drivers, especially amid increasing regulatory scrutiny of public blockchains. The market appears to be rewarding these attributes while penalizing the uncertainty surrounding Zcash, marking a potential turning point in the privacy coin landscape.
