Privacy-focused digital assets have recently shown many highlights, with XMR's performance being particularly eye-catching. In terms of market capitalization, XMR has already broken into the $8 billion level, with a growth of over 100% in the past year. It is now not far from the all-time high set in 2021 and has even surpassed ZEC to become the largest market cap in the privacy sector.

Why has XMR been able to outperform against the trend in this wave of market movement? There are two main aspects worth noting:

First is the scarcity of the sector itself. Privacy assets have high technical barriers. XMR's anonymous technology has been validated and iterated over many years, maintaining stability and market recognition among similar products. This stable technical foundation ensures consistent market demand.

Second is the chain reaction caused by the dynamics of competing products. Recently, ZEC's performance has been somewhat weak, leading funds to concentrate on top-ranking assets within the sector. XMR has become the main beneficiary of this liquidity influx and is gradually becoming the preferred choice for investors in the privacy coin field.

Moving forward, two signals should be closely watched: First, whether XMR can maintain its $8 billion market cap and break through the selling pressure near its all-time high; second, the overall sentiment of the privacy coin sector, especially whether ZEC's upcoming performance will drag down the sector.

What do you think about this market movement? Can XMR break through its all-time high? Feel free to share your thoughts in the comments.