How are you all? Today, I am back with an exciting special analysis for you.
A peculiar transformation has occurred in the cryptocurrency market lately. Privacy-focused coins that had largely flown under the radar for months now have become the market's hot topic. The notable increases of Horizen (ZEN) and Dash (DASH), two privacy coins, have garnered the interest of investors as of early November. ZEN increased around 56 percent and DASH around 48 percent, outperforming many of the large crypto assets.
This rise cannot be called just a short-term gain. Rather, there are several deeper reasons behind it, one of which is the growing interest of people in digital privacy. Nowadays, financial transactions, especially online transactions, have come under much more surveillance than before. As a result, those who want to keep their information limited are once again turning to privacy-oriented cryptocurrencies.
Both Horizen and Dash have been able to keep their users’ transactions more secure and private through their own technologies. While Horizen uses ‘zero knowledge proofs’ and a trusted execution environment, Dash offers fast and confidential transactions through its familiar ‘InstantSend’ and ‘PrivateSend’ features. This is where investors are now attracted.
On the other hand, another important aspect of Horizen’s recent success is its new location — it has now moved to Coinbase’s Ethereum Layer-2 network ‘Base’, as a result of which ZEN is now operating as an ERC-20 token. This change has instilled new optimism in the market, and Horizen’s trading volume has also suddenly increased significantly.
The picture is much the same in the case of Dash. After a long period of decline, it has finally returned to the path of recovery. After about 968 days of continuous decline, Dash is back on a strong footing. The almost 100 percent price increase from late October to early November has created a new kind of confidence among investors. Their “Project Three Billion” initiative, in particular—which aims to bring Dash to nearly half the world’s population—has greatly expanded Dash’s practical utility.
Beyond these two projects, the entire privacy coin sector has seen a new lease of life. Zcash has risen above $200 for the first time since 2021, and Monero (XMR) still holds onto its market leadership with a market cap of nearly $5 billion. While Monero is at risk of being delisted from many exchanges, its use on decentralized exchanges is growing.
In my view, the upward thrust of privacy cash isn’t just a story of charge will increase—it’s also a reflection of a changing mindset. Cryptocurrencies were born out of the idea of freedom, decentralization, and private privacy. Over time, that original idea has, in large part, been misplaced as foremost systems and regulators have regularly improved transparency and tracking throughout the atmosphere. Now, there is a brand new wave of return to that antique paradigm.
That being said, regulatory pressure continues to be the biggest risk factor for the sector. Many nations are putting stricter regulations on privacy tokens, and many exchanges are also removing them from their listings. But, in the meantime, users are turning to other platforms, which shows that there is a lasting demand for this sector.
All-in-all, privacy coins are not the forgotten corner they used to be. The question now is—just a bull rally, or the beginning of a new sector? Personally, it looks as if technology improvements and functional activities continue at this pace, so this sector may once again become a feature in the coming days. That said, investors should be wary—because as opportunities come, so do risks, just as quickly.
Posted Using INLEO