Monero Hits Record High as Demand for Privacy Coins Surges

Monero (XMR) reached new all-time highs overnight, with $658 now considered the record price on Tuesday morning. The reasons for Monero’s momentum are closely linked to its status as a privacy coin.

The mood in the crypto markets is characterized by stagnation; Bitcoin, as the leading cryptocurrency, is currently unable to provide any impetus. But one altcoin stands out clearly from the general crowd: Monero (XMR), known as a leading privacy coin. Yesterday, Monday, Monero broke its previous all-time high of $542, which dated back to 2018.

The XMR price curve then approached $600, easily cleared this hurdle overnight, and this Tuesday morning, Monero reached a new all-time high of $658, a 20 percent increase compared to the record price from 2018.

Monero’s momentum is undeniable, XMR is approaching the crypto top ten

Riding this momentum, Monero now boasts a market capitalization of around 12 billion US dollars, securing it twelfth place among the most important global cryptocurrencies. The reasons for the XMR rally are manifold, but they all share the common thread of being a privacy coin. Time for an analysis:

The privacy coin sector has been trending since late summer, when Zcash (ZEC) began its price surge. This privacy coin had previously received little attention, with Monero the undisputed market leader. However, the public endorsement of ZEC by crypto celebrities like Arthur Hayes paid off; Zcash saw its price increase by several hundred percent and overtook Monero in market capitalization at the beginning of November 2025.

– At the end of 2025, the Monero community had to take a deep breath, as Zcash was subjected to criticism regarding alleged weaknesses in ZEC’s privacy concept. Simultaneously, XMR’s price surged, reaching a yearly high, and Monero reclaimed its position as the market leader among privacy coins from Zcash. It was already clear at that point that a growing number of crypto investors wanted an altcoin in their portfolio where transactions could be organized in such a way that senders and recipients could not be identified through blockchain data – a crucial feature for the privacy coins Monero and Zcash.

Last week, the foundations of the privacy coin Zcash were shaken. The ZEC development team, consolidated within the Electric Coin Company, announced their withdrawal via their leader Josh Swihart, citing “impossible” working conditions. The Zcash Foundation attempted to calm the situation with a statement. However, the Monero team observed a price drop in Zcash as a result of the departure of the core ZEC developers.

This week, Monero began its rally, gaining approximately 45 percent so far and reaching an all-time high. The problems with Zcash led to capital shifts towards XMR, and the newcomers who have been flocking to privacy coins since September 2025 remain invested.

With Monero, financial privacy is a civil right

Financial privacy is increasingly considered a fundamental goal by citizens, as Riccardo Spagni, aka fluffpony, describes the development. He was a leading figure in Monero for a long time and sees “dystopian systems” around him that want to know who spends their money, where, when, and on what, and with whom. Bank transfers and credit cards offer no protection from the scrutiny of authorities, but transactions involving Bitcoin, Ethereum, and other cryptocurrencies are also publicly documented on blockchains for all eternity.

Monero, as a privacy coin, protects against unwanted publicity with its “ring signature” principle. This principle automatically processes every XMR transaction through a pool of many users, effectively obscuring the sender and recipient. When news circulated in 2024 that Monero could be traced by experts, it turned out to be a hoax – anyone who follows simple rules when using XMR remains anonymous.

Regulators and prosecutors worldwide hate Monero

This Monero feature has long led state prosecutors and regulators to seek to shut down XMR. The financial regulator in Dubai has just implemented a ban on privacy coins like Zcash and Monero, and major cryptocurrency exchanges like Binance and Coinbase will remove XMR from their platforms by 2024 at the latest. Some observers at the time expected Monero to decline without a presence on prominent marketplaces – but they were wrong.

Indeed, XMR is more popular than ever as a privacy coin. However, a portion of Monero’s user base belongs to the criminal underworld, who value the financial anonymity it offers in drug deals. Money laundering and terrorist financing are also not uncommon occurrences with Monero. On the other hand, cash is legal, and there are compelling reasons for crypto millionaires to keep their wealth secret, given the increasing prevalence of robberies and extortion.

Conclusion: Privacy coin Monero breaks records – Zcash falls behind

An official ban on privacy coins is still being prepared in the EU. Monero has already proven through its price performance that it can overcome such obstacles. XMR users, for example, exchange Bitcoin for Monero on decentralized crypto platforms, thus anonymously circumventing bans or restrictions. With Zcash, privacy features are not mandatory, but merely an option.

This is why ZEC remains listed on Binance, Coinbase, and other leading crypto exchanges, which facilitated the price surges in 2025. However, this means Zcash is only a limited privacy coin, and the departure of the development team casts doubt on ZEC’s future viability. Meanwhile, Monero, with its record prices, is demonstrating strength and can expect to continue to benefit significantly from the increasing demand for privacy coins in 2026.

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(Featured image by Markus Winkler via Unsplash)

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