Zcash, Monero Outperform Bitcoin on Privacy Coin Trade

The main draw for Zcash is its upcoming NU7 network upgrade, due around Nov. 5. The update is expected to cut block time from 75 seconds to 25 seconds, speeding transaction confirmation, while temporarily removing 60% of each block’s fees from circulation until February 2031 — a change that traders typically read as supply supportive.

Zcash has also benefited from the launch of a Grayscale ETF in August, helping push the token up 137% this year. That compares with Bitcoin’s slump and highlights how product access and narrative can matter more than broad crypto beta when liquidity turns selective.

Monero’s move is more muted, but it is still ahead of Bitcoin over the past two weeks, adding 13.6% in that span. The privacy token trade has also been helped by what traders view as a FinCEN regulatory retreat, easing some of the pressure that has long weighed on anonymous-transfer cryptocurrencies.

Even so, conviction remains limited. Zcash is still down 24.1% over the past 30 days and sits 62.2% below its 2016 peak, while Monero remains 24% below its January high of $797.73. Zcash’s trading volume has faded after its recent spike, a warning sign that momentum may be cooling.

Bitcoin’s own weakness is weighing on the broader crypto complex. The token dropped to $77,930 on Nov. 1, with the 50-day moving average still above spot and RSI readings in the low 30s, pointing to a market that remains technically damaged despite a rebound from recent lows. Adalytica’s Bitcoin Fear & Greed Index shows extreme fear, even as awareness remains elevated.

For investors, the key question is whether privacy coins can keep decoupling from Bitcoin or whether the move is just a short-lived rotation into event-driven trades. The next test comes with Zcash’s upgrade date and whether volume returns to confirm the rally rather than simply chase it.