Monero Surpasses All-Time High as Zcash Struggles Amid Governance Dispute

Monero (XMR) has surged past its previous all-time high, trading above $444 on January 11, 2026, driven by strong derivatives metrics and whale activity. Open interest in XMR futures rose to $92 million, reflecting renewed investor confidence. The price rebounded from key support at $418, aligning with the 50-day EMA level.

Derivatives data shows a positive funding rate of 0.012%, indicating long positions are dominating the market. Historically, this has been followed by price rallies. CryptoQuant's data also highlights increased whale activity, further supporting a bullish outlook.

Monero's rise coincided with a significant drop in Zcash (ZEC), which lost nearly 14% in a single day after the entire Electric Coin Company team resigned. The resignations followed a governance dispute with Bootstrap, the nonprofit overseeing Zcash operations.

Why Did This Happen?

The core development team at Electric Coin Company (ECC) resigned after disagreements with Bootstrap's board over changes to employment terms and governance policies. Josh Swihart, former ECC CEO, stated the team had been constructively discharged and would form a new company to continue their mission.

Bootstrap cited fiduciary obligations as a nonprofit under U.S. tax law and expressed concerns about external investment structures like Zashi wallet. These governance issues led to uncertainty among investors, triggering a sell-off.

Zcash's token (ZEC) dropped to an intraday low of $381, with its RSI falling below 40 and bearish momentum indicated by the MACD indicator. Despite this, large whales have accumulated $914,000 in ZEC over 24 hours.

How Did Markets React?

Monero, by contrast, saw a strong reversal in market sentiment. Institutional investors and large traders are betting on XMR's potential to surpass $500. The privacy-focused coin is now the largest in its category by market capitalization.

Solana and XRP also benefitted from the shift in investor sentiment. Solana recorded over $38 million in ETF inflows in the past week, while XRP products attracted nearly $9 million in a single day. Both projects are seeing increased institutional adoption.

Zcash's struggles have allowed Monero to regain its position as the leading privacy coin. Analyst Hanzo predicted ZEC could drop to as low as $55 if the governance issues persist. Whale selling and governance uncertainty have fueled the bearish sentiment.

What Are Analysts Watching Next?

Investors are monitoring the developments in Zcash's new governance framework and the potential launch of CashZ, a new Zcash wallet from the former ECC team. The wallet aims to scale Zcash usage but remains unproven.

For Monero, the focus is on whether the current rally can hold above $444. A break above $497, the previous December high, would signal a stronger bullish bias. Derivatives activity will be key in assessing market sentiment.

Analysts also highlight the broader institutional shift toward privacy coins, with Grayscale identifying Zcash as a promising asset for 2026. The post-quantum cryptography market is expected to grow significantly, further influencing investor behavior.