Zcash vs Monero: Which anonymous cryptocurrency will lead the next rally?

Monero and Zcash are currently the two most prominent names in the anonymous cryptocurrency segment in the crypto market. Over the past week, the market has shown signs of recovery with an upward trend, creating opportunities to evaluate the performance of different coins within specific segments.

Price Race Between Zcash and Monero: XMR Breaks Out, ZEC Loses Momentum

In recent months, Zcash and Monero have continuously competed for the top spot in the anonymous cryptocurrency segment. At one point, Zcash (ZEC) seemed to be leading. However, unexpected market fluctuations have changed the landscape, giving an advantage to Monero (XMR).

Looking at price movements, Monero is currently leading. At the time of writing, XMR is trading at $343, down 1.85% over the past week.

Monero Price Movement | Source: CoinphotonThis growth continues the positive trend that XMR has maintained since hitting a low of $276 in the first week of February. With the current price, Monero has increased by over 30% from its four-week low.

Zcash Price Movement | Source: CoinphotonIn contrast, Zcash has shown a decline, with the current trading price at only $195, down 7% in the past 24 hours. This also reflects a more cautious sentiment among investors toward ZEC compared to the optimism surrounding Monero.

Zcash Leads the Zero-Knowledge Proofs Segment by Market Cap

Although Monero remains the leader in the anonymous cryptocurrency segment, especially based on recent price movements, the latest data shows that Zcash has overtaken to lead in the field of coins utilizing Zero-Knowledge Proofs (ZKP).

According to the latest CoinGecko rankings, Zcash is now at the top of the list of cryptocurrencies using ZKP to verify transactions, based on market capitalization.

Top Zero-Knowledge Cryptocurrencies by Market Cap | Source: CoinGeckoInterestingly, Monero also employs ZKP in its operations, but this technology is not a core component of XMR’s system as it is with Zcash or some other leading coins. This is why Monero does not appear on this ranking.

Zcash’s leading position in the Zero-Knowledge Proofs segment demonstrates its strength and influence in the market. This could give Zcash a strategic advantage in further exploiting the potential of ZKP technology.

Mining Performance Comparison: Zcash Slightly Ahead but Not by Much

Cryptocurrency mining is a vital part of the infrastructure for coins based on the Proof-of-Work (PoW) consensus mechanism. Both Monero and Zcash use PoW, making it easier to compare mining performance between the two coins.

According to the latest data, mining Zcash currently yields higher profits than Monero. Specifically, Monero’s mining revenue is $1.56 per day, with electricity costs of $0.67, resulting in a net profit of about $0.81 per day.

Meanwhile, Zcash’s mining revenue is significantly higher at $2.80 per day. However, its electricity costs are also higher, at $3.72 per day, reducing net profit to $0.92 per day. Although ZEC has a slight profit edge, the difference is not enough to significantly influence miners’ decisions.

Notably, with higher electricity costs, Zcash is more susceptible to price and energy cost fluctuations, making its mining less stable compared to Monero.

Conclusion

Although the anonymous crypto market faces many uncertainties, Zcash continues to demonstrate its position within the Zero-Knowledge Proofs segment. However, Monero’s strong growth and stable mining profits are solidifying its leadership in the anonymous coin segment. The competition between these two coins is expected to continue intensively in the near future.