Privacy tokens have become the focus this week, rising against the trend and resisting the broader downturn in the cryptocurrency market.
Prominent commentators in the cryptocurrency space have been predicting for months that the prices of privacy coins would soar. Their predictions now seem to be coming true.
Some have questioned whether there is a coordinated effort to drive up the prices of privacy coins. Alex Bornstein, Executive Director of the Zcash Foundation, told Cointelegraph that Zcash's recent success is due to widespread concerns about government infringement on user privacy rights.
A combination of hype and technical factors has brought privacy coins back into the spotlight while other coins struggle.
Privacy coin Zcash (ZEC) has seen significant gains, with its market capitalization rising over 10% in the past week. Zcash's price has increased by more than 76% in the last seven days, reaching $632. It has surpassed Monero (XMR) to become the largest privacy coin by market capitalization.
The price increase is attributed to significant upgrades made by network developers Electric Coin Company. At the beginning of the month, the company introduced cross-chain swaps and private payments through integration with the transaction layer Near Intents.
This integration led to a surge in transaction volume for Zcash on Near Intents and expanded the "shielded pool"—a collection of encrypted addresses storing ZEC.
Bornstein told Cointelegraph on Chain Reaction, "This is just a powerful narrative, and I think people are realizing what Zcash can really achieve."
Monero (XMR), which was the largest privacy coin in the market until recently, saw its price rise nearly 10% in the past week. Its market capitalization increased by 2.7%, reaching $6.62 billion.
On October 8, the Monero blockchain introduced the Flourine Fermi update, aimed at providing users with higher security against "spy nodes."
In Monero terminology, spy nodes are malicious nodes, groups of nodes, or botnets that can compute transactions and match them with addresses on the Monero network.
As privacy coins become increasingly difficult to use due to delistings from exchanges, regulatory pressures, and the aforementioned spy nodes, the Monero community has been working hard to maintain the privacy of the blockchain.
It has also established security protocols. By the end of 2024, the Monero Research Lab has proposed allowing node operators to compile a blacklist of suspicious spy nodes based on IP addresses.
The price of privacy coin Dash (DASH) rose over 130% this week, ending the seven-day period slightly above $107.
On November 2, the decentralized exchange Aster DEX launched Dash perpetual futures trading with a leverage of 5x. The listing on the new exchange boosted the token's liquidity and visibility. Analysts noted that the price increase is partly attributed to the current narrative surrounding privacy coins.
The price of privacy coin ZKsync (ZK) increased by 113%, trading at $0.063 over the weekend.
ZKsync is an Ethereum Layer 2 network that uses zero-knowledge (ZK) rollups to process transactions off-chain and may soon undergo significant changes to its governance token.
On Tuesday, ZKsync co-founder Alex Gluchowski stated that the network has significantly evolved, having hosted multiple interconnected zero-knowledge chains since the project's inception.
He said, "The goal is to align usage with value, making decentralization economically sustainable and ensuring the network captures a meaningful share of the economic benefits it creates."
To achieve this goal, Gluchowski suggested changes to the tokenomics, stating that it should derive on-chain value from fees generated by "interoperability and other core settlement and messaging functions" and obtain value off-chain through licensing agreements for "enterprise software components."
He also suggested licensing transactions when large enterprises adopt the network. "When these functions are funded by the ecosystem, the usage by enterprise participants should reasonably bring value to the ecosystem."
Decred (DCR) also saw a significant price increase this week. The token surged on Monday but pulled back, closing the week up 90% at $30.
Decred's price has remained within a relatively narrow range for most of the past two years. The recent price surge indicates growth driven by narrative as other privacy token prices rise.
On November 3, CoinMarketCap identified Decred as a privacy coin, which also drew attention to its staking and governance structure. The network uses a hybrid proof-of-work (PoW) and proof-of-stake (PoS) mining system to "ensure that small groups cannot dominate transaction flows or make changes to Decred without community input."
Related: Analysts: Bitcoin (BTC) dominance may continue to decline for weeks, signs of altcoin season have quietly emerged
Original article: “Five Privacy Coins Pumping This Week”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
