XRP News Today: Zcash’s Focus on Privacy Poses a Challenge to XRP’s Leading Role in Crypto Compliance

Over the past week, Zcash (ZEC) has jumped by 45%, reclaiming its lead among privacy-centric cryptocurrencies as renewed enthusiasm for confidential transactions boosts market optimism. This surge, driven by optimistic forecasts from industry leaders and a heightened focus on financial privacy, has put

in direct competition with and Monero (XMR), reshaping the digital asset landscape as global regulations become more stringent.

The rally gained momentum after Mert, CEO of Helius—a Solana infrastructure provider—made a bold prediction that

could overtake XRP in market value by 2025. "In an era of growing surveillance, privacy coins are a moral necessity," Mert declared in a widely circulated . His remarks reignited discussions about privacy’s importance in the crypto space, especially as authorities ramp up data oversight and central banks advance digital currency projects. Zcash’s zk-SNARKs technology, which enables optional anonymity for transactions, has attracted attention in regions with strict data regulations like the EU, where privacy coin transaction volumes have climbed 45% this year, according to reports.

The optimistic outlook was further fueled when Arthur Hayes, BitMEX’s co-founder, set a $400 price target for ZEC, later making an even bolder

. Hayes, recognized for his unconventional perspectives, pointed to factors such as Zcash’s resilience during market slumps and its potential to follow and Ethereum’s early growth patterns. His statements led to a 20% jump in ZEC’s 24-hour trading volume, with prices briefly surpassing $330. Technical analysts have since noted an ascending triangle pattern on ZEC’s chart, indicating further upside if the $281.35 support holds.

Zcash’s recent gains stand in stark contrast to XRP’s compliance-oriented approach. While XRP, with a $152.8 billion market cap, leads in cross-border payments and institutional use, privacy supporters argue that ZEC’s shielded transactions are essential for protecting against surveillance. This highlights a broader split in the industry: XRP’s openness appeals to traditional finance, while Zcash’s privacy features attract those seeking greater financial autonomy.

The rally also reflects changing investor preferences. Zcash’s market cap has reached $5.8 billion, overtaking Monero’s $4.2 billion. Analysts credit this to Zcash’s technical improvements, such as the Halo 2 protocol, which enhanced scalability while maintaining privacy. However, XRP’s liquidity remains a major advantage, with daily trading volumes above $5 billion compared to ZEC’s $150 million, keeping it a strong rival.

Regulatory shifts may further shape this competition. The U.S. Treasury’s latest stance on privacy tools has drawn both criticism and acknowledgment of the need for compliant privacy solutions. In Europe, the MiCA framework requires transparency for stablecoins but leaves space for privacy-focused innovation, which could favor ZEC’s integration.

Nonetheless, some remain cautious. DeFi experts warn that ZEC’s price surge could be the result of coordinated hype, amplified by social media. Additionally, only about 10% of Zcash transactions currently use privacy features, suggesting that widespread adoption is still limited.

Despite these reservations, Zcash’s rally marks a turning point, showing that privacy is becoming a mainstream concern in crypto. As data collection by governments and corporations expands, the demand for confidential financial tools is expected to grow, challenging the dominance of compliance-oriented tokens like XRP. For now, Zcash’s rise represents a significant moment for privacy advocates and could signal a shift in the crypto hierarchy.

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