Monero Surges 20% as Zcash Crashes: Privacy Coin Battle Heats Up in Late 2016

As the cryptocurrency market navigated a turbulent week in early November 2016, a fascinating dynamic was unfolding in the privacy coin sector. Monero (XMR) surged more than 20% while Zcash (ZEC) — barely weeks old after its highly anticipated October launch — was in freefall, plunging close to 75% from its opening price.

TL;DR

• Monero surged over 20% from $4.99 to $6.13 during the first week of November 2016
• Zcash crashed approximately 75%, falling from $900 to $225.74 in the same period
• Bitcoin traded at $688.70 on November 3, down roughly 7% from the previous day
• Monero’s established dark web adoption gave it a significant edge over the newer Zcash
• Traders rotated capital from ZEC into XMR as Zcash’s steadily growing supply pressured prices downward

The Privacy Coin Divergence

The contrast between Monero and Zcash in early November 2016 could not have been more striking. Monero, which had been trading around $4.99 at the start of the week, rocketed past $6.13 — a gain exceeding 20% that placed it among the top-performing digital assets of the period. At the time, Monero’s market capitalization stood at approximately $64.8 million, with the coin ranked sixth on CoinMarketCap.

Zcash, on the other hand, was experiencing a brutal post-launch correction. After generating enormous excitement with its debut in late October 2016 — briefly trading above $900 — the cryptocurrency had lost nearly three-quarters of its value by November 3, settling around $225.74. The plunge was driven largely by Zcash’s rapidly expanding circulating supply, which was increasing significantly every week as new coins were mined.

Why Monero Won the Week

Several factors contributed to Monero’s strong performance during this period. First and foremost was the cryptocurrency’s established track record. Launched in 2014, Monero had two years of battle-testing behind it and had already achieved significant adoption on dark web marketplaces, where its privacy features were highly valued.

Petar Zivkovski, director of operations for leveraged bitcoin trading platform Whaleclub, noted that Monero was becoming an increasingly interesting asset for traders. He pointed to a developing dynamic between the two competing privacy platforms, suggesting that capital was flowing from Zcash sellers directly into Monero.

Jacob Eliosoff, a cryptocurrency fund manager, echoed this assessment. He explained that the total ZEC supply was still increasing very quickly every week, which meant more sellers and a dropping price, noting that these sellers appeared to be putting their proceeds into Monero.

The Broader Altcoin Landscape

While the Monero-Zcash drama dominated headlines, the broader altcoin market was relatively subdued. Ethereum’s ether (ETH) was trading at $10.80 on November 3, down slightly from $10.83 earlier in the week — a decline of less than 3%. Ethereum Classic (ETC) moved in the opposite direction, rising roughly 6% against bitcoin after exchange BTCC expressed interest in listing the digital currency.

Litecoin (LTC) was trading at $3.86 with a market cap of approximately $186 million, while XRP sat at $0.008 with a market cap of about $286 million. The total cryptocurrency market capitalization hovered around $11.8 billion — a fraction of what it would become in subsequent years.

Bitcoin’s Pre-Election Slide

The broader market context was shaped by bitcoin’s notable decline on November 3. The leading cryptocurrency dropped approximately 7% from roughly $742 to $687 in a single day, as uncertainty ahead of the US presidential election (scheduled for November 8) weighed on markets. Bitcoin’s market cap stood at approximately $11 billion.

This pre-election jitters period would prove to be short-lived. Within days of Donald Trump’s surprise victory, bitcoin would rally back toward $740, though the initial market reaction was characterized by cautious positioning and risk-off sentiment across digital assets.

Why This Matters

The Monero-Zcash dynamic of November 2016 illustrates a recurring theme in cryptocurrency markets: hype versus adoption. Zcash entered the market with cutting-edge zero-knowledge proof technology and massive initial valuations, but it was Monero — with its simpler but proven approach to privacy and its real-world usage — that delivered sustainable value for investors.

This episode also highlights how cryptocurrency market dynamics in late 2016 were still largely driven by retail traders and speculative positioning, with the entire market cap of all digital assets combined barely exceeding $11 billion. The infrastructure and institutional participation that would define later years was still in its earliest stages.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making any investment decisions.