Monero breaks through the 2017 high again after 8 years, what is the real driving force behind the privacy coin's rebound

Monero (XMR) hit a new all-time high on Sunday, breaking through $567, reaffirming its highest point since the 2017 bull market cycle. This breakthrough not only signals a strong rebound in the privacy coin market but also reflects a deeper shift in market demand for privacy assets.

Specific Performance of the Price Breakthrough

Monero’s upward momentum is quite strong. According to the latest data, XMR has increased by 18.13% in the past 24 hours, with a 7-day gain of 35.10%, and a 30-day increase of 38.85%. This accelerating rise has continued the overall trend that began at the end of 2025, when privacy tokens already demonstrated greater resilience than the overall crypto market.

Comparison with the Historical Highs

This comparison is quite interesting. It took Monero 8 years to break through the 2017 high again, which not only indicates its enduring value in the market but also reflects the long-term pressure on the privacy coin sector.

Drivers Behind the New High

Reignition of Privacy Demand

The overall performance of privacy coins in 2025 was strong. Data shows that Monero rose 122% throughout the year, while Zcash achieved a three-digit increase of 782%. An important background for this is the official implementation of the EU DAC8 tax directive, requiring exchanges to fully report user transaction data. This tightening regulation has, paradoxically, stimulated market demand for privacy assets as a safe haven.

Record Development Activity

A key but often overlooked indicator is development activity. According to Artemis data, the number of core developers submitting code for Monero reached 400 at the end of December 2025, setting a new record. This indicates that the project’s technical strength and community engagement are continuously strengthening, providing genuine long-term support for the coin’s price.

Quality Differences Behind Market Segmentation

The privacy coin market has shown interesting segmentation. For example, Zcash experienced a sharp decline of over 26% at the end of 2025 due to the collective resignation of its core development team, Electric Coin Company. In contrast, Monero defied the trend and rose again, re-entering the top 25 cryptocurrencies. This clear segmentation highlights that even among privacy coins, factors such as governance, development team stability, and community consensus can vary greatly.

Risk Warnings Cannot Be Ignored

Ryan McMillin, Chief Investment Officer of Merkle Tree Capital, pointed out an important risk: privacy coins are mainly traded on offshore exchanges, and concentrated liquidity may lead to fragmented price discovery and amplified volatility. This means that although prices are reaching new highs, the underlying liquidity depth may not be as robust as mainstream coins. Investors should be cautious of short-term price manipulation risks.

Future Outlook

From the perspectives of regulation and application, the privacy coin market is undergoing subtle shifts—from “completely anonymous” to “auditable privacy.” This suggests that truly viable privacy projects need to balance user privacy protection with compliance within regulatory frameworks. Monero, as a project committed to enforced full-chain privacy, is regaining market attention, possibly reflecting a market re-pricing of the “pure privacy” attribute.

Summary

Behind Monero’s new all-time high lies genuine growth in privacy coin demand, increased project development activity, and a market re-evaluation of the long-term value of privacy assets. However, issues such as liquidity concentration and price manipulation risks also warrant vigilance. The future development of privacy coins may not lie in pursuing absolute anonymity but in achieving sustainable privacy protection within regulatory boundaries. This balancing ability might be the key factor in determining the long-term value of privacy coin projects.