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If Zcash (ZEC) is one of the winners in 2025, 2026 could become the year Monero (XMR) stands out.
Several factors indicate that XMR has the potential to become a niche asset in 2026. However, the same characteristics also make it a sensitive asset. It may expose users and investors to legal risks.
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The stable demand for chain transactions for many years
The first catalyst comes from the XMR demand for on-chain transactions. This trend is clearly visible in the blockchain data.
Bitinfocharts data tracks the daily transaction numbers for three major privacy coins over the past three years or more.
Transaction volumes for ZEC and DASH increased significantly in Q4 2025 and then decreased sharply. In contrast, the number of XMR transactions has remained stable for several consecutive years.
Stable demand provides a strong foundation for long-term growth and stability. This classification is fundamentally different from growth driven by short-term hype and speculation.
Also, it indicates Reports The latter indicates that over longer periods of time, XMR shows stronger trading volume and user activity than ZEC and DASH.
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Monero May Avoid Risks Similar to Zcash (ZEC)
The second catalyst comes from signs of strong and consistent developer activity around Monero.
Unlike many projects, It doesn’t work Monero (XMR) is under an official company. Maintain a decentralized society From researchers, developers and volunteers to maintain and develop the protocol.
This structure helps XMR avoid similar risks For those faced by the ZEC development team. Many investors believe that this factor can support new price increases. This is particularly important as investors increasingly avoid assets that carry a risk of centralized governance.
“XMR remains the most exciting large-cap altco in my view for the near future. A decade-long history of the real use of private money, not just excessive speculation. He said Investors The Crypto Dog.
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Artemis data also shows that core developer weekly commitments for Monero reached 400 at the end of December last year. This was an all-time high.
This signal reflects a strong commitment from the development community. This can help build trust among new investors.
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Privacy becomes central in the era of cryptocurrency tax reporting
The third catalyst comes from the growing demand for privacy as new tax reporting frameworks for cryptocurrencies come into effect in 2026.
Pointing A report by BeInCrypto notes that the new EU directive DAC8 on the transparency of the tax of digital assets entered into force on January 1, 2026. The rule requires exchanges, brokers and miners to report user data and detailed transactions to national tax authorities.
“Monero (XMR) is the ultimate nightmare for tax authorities. It was designed from the beginning to resist tracking via ring signatures, secret transactions and hidden addresses.” He said Investor CR1337.
Using XMR to hide transactions may be considered illegal in many legal frameworks. However, this reality still reflects part of the market demand.
This dynamic is like two sides of the same coin. As regulatory pressure increases, so does the demand for privacy tools. Therefore, the market for Monero still exists, as long as the asset provides a real benefit that aligns with the user’s goals.
However, acting against government authorities and interests also exposes XMR users to legal risks.
