diff --git a/CHANGELOG.md b/CHANGELOG.md
index cc9a32b78b5a..752ab55f5191 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -42,6 +42,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 * [\#10262](https://github.com/cosmos/cosmos-sdk/pull/10262) Remove unnecessary logging in `x/feegrant` simulation.
 * [\#10327](https://github.com/cosmos/cosmos-sdk/pull/10327) Add null guard for possible nil `Amount` in tx fee `Coins`
+* [\#10339](https://github.com/cosmos/cosmos-sdk/pull/10339) Improve performance of `removeZeroCoins` by only allocating memory when necessary
 
 ### Bug Fixes
 
diff --git a/types/coin.go b/types/coin.go
index fd81cb58203a..903945b25837 100644
--- a/types/coin.go
+++ b/types/coin.go
@@ -795,7 +795,18 @@ func (coins Coins) negative() Coins {
 
 // removeZeroCoins removes all zero coins from the given coin set in-place.
 func removeZeroCoins(coins Coins) Coins {
-	nonZeros := make([]Coin, 0, len(coins))
+	for i := 0; i < len(coins); i++ {
+		if coins[i].IsZero() {
+			break
+		} else if i == len(coins)-1 {
+			return coins
+		}
+	}
+
+	var result []Coin
+	if len(coins) > 0 {
+		result = make([]Coin, 0, len(coins)-1)
+	}
 
 	for _, coin := range coins {
 		if !coin.IsZero() {