Monero's XMR Hits $500 for the First Time Since 2021 as Rival Zcash Fumbles

Monero's XMR price rose above $500 for the first time since May 2021, reaching a high of $500.66 on Sunday according to Cointelegraph. This comes as Zcash (ZEC) faces a significant governance crisis, with its core development team resigning en masse. The shift in investor sentiment appears to favor Monero over Zcash amid the latter's instability.

Zcash's Electric Coin Company (ECC) team cited intolerable working conditions and governance disputes as reasons for their resignation according to reports. This has raised concerns about the future direction of the project and left a vacuum in protocol development as noted by Crypto News. Monero, by contrast, has seen growing institutional interest and is now being viewed as a safer bet for privacy-focused exposure according to BeInCrypto.

Derivatives metrics for XMR show a bullish bias, with rising open interest and positive funding rates according to FXStreet. Analysts point to the need for a decisive breakout above $500–$520 to confirm the strength of the current rally as reported by Cointelegraph. A failure to maintain this level could trigger a sharp pullback, based on historical patterns as Cointelegraph indicates.

Why Did This Happen?

Monero's ascent is attributed to a combination of factors, including stable on-chain transaction demand and consistent developer activity according to BeInCrypto. Unlike Zcash, Monero operates under a decentralized community structure, which may appeal to investors wary of centralized governance models as noted by BeInCrypto.

Institutional analysts, including those from Grayscale and Coinbase, have cited privacy coins as a key growth theme in 2026 according to Cointelegraph. This is driven by growing demand for financial confidentiality in a regulatory-evolving landscape as Cointelegraph reports.

How Did Markets Respond?

Zcash's price dropped over 20% in the days following the mass resignation according to Cointelegraph. By contrast, Monero has maintained a steady rise, supported by both market sentiment and technical indicators as Cointelegraph reports.

The market reaction highlights the importance of governance in the crypto space. Monero's decentralized model appears to have insulated it from the volatility associated with centralized team departures according to BeInCrypto.

What Are Analysts Watching Next?

Analysts are closely monitoring whether Monero can break above its all-time high of $517.50 according to Cointelegraph. A sustained move beyond this level could signal stronger investor confidence in the project's long-term viability as Cointelegraph indicates.

Key technical levels include the 50-day EMA at $416.42 and the December 20 high of $497 according to FXStreet. These levels will be critical in determining whether the current rally is a breakout or another failed attempt as Cointelegraph reports.

In the broader privacy coin space, the governance crisis at Zcash underscores the risks associated with centralized development teams according to Cryptoninjas. Monero's decentralized model may offer a more resilient alternative, particularly for investors seeking stability according to BeInCrypto.

Monero's strong developer activity, including over 400 core developer commits in late December 2025, also supports its long-term growth potential according to BeInCrypto. This is seen as a positive sign by investors and analysts alike as BeInCrypto notes.

The market is also watching whether Zcash can recover from its current turmoil. A new development team or a fork could redefine the project's trajectory, but uncertainty remains high as Crypto News reports.

With Zcash in flux, Monero has emerged as the preferred privacy coin for many traders. The coming weeks will be crucial in determining whether this trend continues or reverses according to Cointelegraph.