Privacy Coin frenzy! DASH surges 68% to $146, ZEC and DCR also explode, is Compliance opening the Privacy alt season?

Bitcoin and Ethereum both fell, while privacy coins like Dash and Zcash saw their market capitalization surge nearly 80% within a week, reaching new highs as investors flocked to “anonymous safe havens,” drawing attention to market sentiment and potential risks. (Background: The power shift of privacy coins: Zcash's market cap surpasses Monero for the first time, what trends lie behind?) (Additional background: Is buying ZEC a way to dump BTC? The four industry truths behind the surge of privacy coins) The global cryptocurrency market suddenly cooled, with Bitcoin (BTC) dropping below $106,000, and Ethereum (ETH) falling below $3,600, as most mainstream coins fell into a selling frenzy. However, during the same week, privacy coins emphasizing trading anonymity rose against the trend: Dash (DASH) surged to $136, Zcash (ZEC) climbed to $470, and Decred (DCR) jumped 79%, with the overall market cap of privacy coins increasing nearly 80% in a week, approaching $24 billion. This dramatic contrast quickly brought privacy coins into the spotlight. Privacy coins rise against the trend: Compliance boosts demand Amidst a backdrop of pessimism, funds clearly flowed out of Bitcoin and Ethereum into the realm of privacy coins. Dash soared 66% within 24 hours, while Zcash rose 22% during the same period, reaching a new all-time high. On-chain data also showed an increase in large address holdings, deepening the narrative of “capital safe havens.” Charts indicated that the total market cap of privacy coins crossed $24 billion, forming a mirrored relationship with the trends of mainstream coins, reflecting that funds are seeking defensive targets. Stricter regulations and a stronger dollar have led some investors to lean towards higher levels of anonymous trading. Market observation articles pointed out that “privacy is no longer optional but a necessity.” Mechanisms like obscured addresses and hidden transaction amounts make privacy coins viewed as channels to evade monitoring. Zcash, through zk-SNARKs, Halo, and the newly launched Zashi wallet, combined with Solana's expanded functionalities, provides a “transparent/obscured option,” maintaining privacy while ensuring compliance flexibility, which is easier for institutions to accept compared to Monero's (XMR) full privacy mechanism. After the flash crash in October, many traders turned to smaller market cap targets with novel narratives. Privacy coins have a low market cap and concentrated news flow, making them a popular choice for chasing the “next breakout,” even Grayscale (Grayscale) Zcash trust has grown to $137 million, indicating a bilateral follow-up from institutions and retail investors. The leading effect of Zcash and Dash Zcash's price rose 496% over three months, with the fear and greed index jumping to “extreme greed,” as some traders bet that the upcoming halving event in November would further tighten circulating supply. Dash also broke a three-year high to $97, attracting funds through masternode rewards and governance mechanisms. Although Monero has faced delisting from certain exchanges, its technical foundation and loyal community still provide price support, highlighting the long-tail impact of the privacy narrative. The surge of privacy coins carries high volatility risks: If the price rises rapidly in the short term without new funds stepping in, the pullback could be magnified. There is also uncertainty at the regulatory level; although Zcash's optional privacy design helps reduce delisting risks, a policy shift could still restrict trading channels. Finally, the technical vulnerabilities brought by blockchain protocol updates cannot be overlooked. Investors should adopt a diversified strategy and set stop losses in the second year of the Trump administration while facing a volatile global economy and policy landscape, as blindly chasing prices may hinder an effective navigation through the wave of privacy coins. Related reports Privacy coins $ZEC surged 6 times in a month, what drove this frenzy? In the black swan crash, $ZEC rose 37% against the trend! Why is the privacy sector shining? What opportunities are there? Privacy coins welcome a widespread surge! Silicon Valley investor Naval Ravikant's remark led to a 200% surge in Zcash over ten days. (Privacy coin frenzy! DASH surged 68% to $146, ZEC and DCR also spiked, compliance opens the door to Privacy alt season?) This article was first published in BlockTempo, the most influential blockchain news media.