Monero’s native token XMR climbed past the $500 threshold and struck an intraday peak near $596 on Jan. 11, marking its strongest price action since 2021. The rally coincided with a governance crisis at Zcash that precipitated a sharp price decline and apparent capital rotation within the privacy-coin sector.
XMR’s advance accelerated into the second week of January, delivering gains that market coverage described as running up to roughly 40% in a single week. Attention from institutions and trading desks amplified the move; market commentary noted that firms such as Grayscale and Coinbase have highlighted privacy coins as a growth theme in recent coverage.
Traders and analysts attributed the move to renewed demand for privacy features amid heightened regulatory attention and a shift of investor confidence toward Monero’s perceived stability and roadmap. For product and compliance teams, the event highlighted the importance of governance transparency and contingency planning to limit spillovers to market liquidity.
Zcash governance fallout
On Jan. 8, Zcash’s price weakened sharply after reports described a boardroom battle that culminated in the mass resignation of the project’s development team. The dispute reportedly involved disagreements over governance and asset management, and it coincided with a rapid exodus of capital from ZEC into other privacy-focused tokens.
That breakdown in internal governance left Zcash trading under pressure and provided a readily visible structural contrast for investors choosing between competing privacy protocols.
The episode reinforced liquidity and access risks tied to governance and operational control in protocol ecosystems. For investors, Monero’s rally has increased focus on market depth, custody options and regulatory exposure for privacy-preserving assets.
Looking ahead, market participants will be watching governance developments at Zcash and whether inflows into Monero sustain after the initial rotation. Those outcomes will test the thesis that privacy demand, rather than short-term technical momentum, can support a durable reallocation of capital across the sector.
