Zcash Crossed $1,600 but Fell 6% in a Day: Can Monero Hold Steady?

Zcash (CRYPTO:ZEC) surged past $1,600 on September 23, then fell sharply by 6.4% to $1,523. In contrast, Monero (CRYPTO:XMR) only dipped by 1.5%, settling at $561. Both Zcash and Monero are leading privacy coins, designed to let users obscure the details of their transactions.

Zcash has much more at stake, rising an impressive 77% over the past month compared to Monero’s 26.4% increase. Furthermore, Zcash’s market capitalization stands at $25.8 billion, more than double that of Monero’s $10.5 billion. As they head into October, the question remains: which privacy coin will hold onto its gains?

Zcash Fell 6.4% on September 24 While Monero Slipped 1.5%

Zcash fell amid a broader market downturn, which hit many top performers hardest. Bitcoin fell 2%, XRP dropped 6.9%, and Uniswap fell 11.5% over the same 24-hour period. This pattern suggests traders were cashing in on profits from the biggest recent gainers, including Zcash.

Interestingly, Monero fared better over the week, up 13.1%, while Zcash rose 11.4%. However, over the month, Zcash’s significant rise likely makes its price more susceptible to pullbacks, as there’s much more profit to take compared to Monero’s moderate growth of 26%.

Despite Zcash trading at 74% below its peak price of $5,942 in October 2016—when far fewer Zcash coins existed—its current market value is nearing an all-time high. This means buyers are investing at a record valuation rather than just trying to recover from previous levels.

Zcash Has a U.S. ETF Buying the Coin, and Monero Has No Regulated Route

A key factor for Zcash is the Grayscale Zcash ETF (ticker: ZCSH), which began trading on NYSE Arca on August 25. It was the first fund to hold ZEC directly, starting with approximately 387,000 ZEC worth about $589 million at $1,523. This ETF allows investors to buy Zcash through regular brokerage accounts, with new investments directly purchasing more ZEC.

In contrast, Monero has not benefited from any regulated financial products. While Monero automatically obscures all transactions, Zcash lets users choose, leading to delistings of Monero on exchanges like Binance, OKX, and Kraken’s European arm in 2024 to comply with tracing regulations. Consequently, Monero’s market moves are primarily driven by existing crypto traders rather than money flowing in from institutional investors.

Zcash Holders Voted for Faster Blocks, but the NU7 Upgrade Has No Date Yet

Another advantage for Zcash is the anticipated NU7 upgrade. Holders of around 2.4 million ZEC, representing about $3.7 billion and two-thirds of eligible coins, voted in a vote that concluded on September 14. The results revealed overwhelming support: 99.9% approved shortening block time from 75 seconds to just 25 seconds—allowing for quicker transaction confirmations—and 98.9% favored maintaining Zcash’s halving schedule that impacts new coin issuance.

Despite this strong support, the vote merely outlines a plan. Developers still need to create, test, and determine a launch date for the upgrade. The vote set a September 30 deadline for new features but does not guarantee an immediate rollout.

Which Privacy Coin Keeps Its Gains, Zcash or Monero?

Zcash appears more likely to retain its gains in the months ahead, thanks to its direct engagement with institutional buyers through the ETF and an upcoming upgrade. Conversely, while Monero may remain more stable during market sell-offs—like the one on September 24—its lack of ETF support means that its buyer base consists mainly of existing crypto traders.

Both coins remain inherently volatile, as Zcash’s 6.4% drop shows how quickly profits can shift. If ZCSH continues to attract a significant portion of crypto ETF trading and ZEC stays above $1,466—about 4% below $1,523—it could sustain its lead. However, if we see outflows from the fund and ZEC drops below this threshold, Monero’s smaller increase may prove to be the safer investment.

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