Monero has regained its lead in the privacy coin sector as Zcash faces turmoil following a major team departure.
Monero (XMR) has reclaimed its position as the leading privacy cryptocurrency, nearing its all-time price peak. This resurgence comes as Zcash (ZEC) faces significant challenges following a major team exodus.
Currently, XMR is valued at over $462, just 14.7% shy of its all-time high of $542 set in January 2015. The cryptocurrency has shown consistent growth in recent weeks, outpacing its rivals in the privacy coin market.
This shift in momentum is particularly notable given that in the latter half of 2025, Zcash was favored by investors while Monero grappled with technical difficulties and concerns over mining centralization.
The landscape changed abruptly when the entire team from the Electric Coin Company, responsible for Zcash, departed, causing the coin's value to drop by 15% in a single day. CEO Josh Swihart cited conflicts with the Bootstrap board, the parent organization, as the reason for the team's exit.
The departing developers are planning to form a new organization and have already announced the launch of a new wallet, CashZ, built on Zashi's code, offering users a seamless transition. However, the sudden departure has cast doubt on Zcash's future development and strategic direction.
The main issues revolved around attempts to monetize the protocol, including controversial plans to privatize the Zashi wallet, which were blocked by the Bootstrap board due to potential legal and corporate risks.
“Nonprofits are nitpicking, while tech startups are rewriting the rules,” Swihart commented.
According to data from Santiment, despite a remarkable 15-fold increase in ZEC's market cap during the fall of 2025, developer activity has plummeted to levels not seen since 2021, signaling potential difficulties ahead.
Recently, ZEC's price has experienced a 40% correction, and analysts have observed that a slowdown in development often precedes a decline in altcoin performance.
Experts from a16z crypto have indicated that privacy features will be a key competitive advantage for cryptocurrency projects in 2026.
