Privacy Coins Surge, Crash, And Reset. Does Zcash Bull Run Signal Use Case Building For On-Chain Anonymity?
Over the past two weeks, privacy coins have made headlines with dramatic price spikes, defying the broader crypto market trend. On Friday, as Bitcoin (CRYPTO: BTC) fell below $100,000, Dash (CRYPTO: DASH) was up 12.3%. Dash’s price action suggests bullish sentiment remains despite falls from the peak pricing roughly 10 days ago.
The privacy coin rally kicked off in late October led by coins like Zcash (CRYPTO: ZEC) and Monero (CRYPTO: XMR). Zcash became the top privacy coin this month, hitting an all-time-high of around $730 before investors cashed in. Zcash is now trading in the $560-$565 range. The same sell off hit Dash, going from an all-time-high of around $147 on Nov. 4 before investors sold and crashed the price by 50%.
Privacy coins obscure sender, receiver, and transaction data, offering anonymity that Bitcoin cannot.
What is it about privacy coins that attracted speculators this month, and will they be coming back?
“Institutions cannot and will not move trillions of dollars on-chain using a fully transparent ledger,” said Shahaf Bar-Geffen, CEO at COTI Group (CRYPTO: COTI) in Israel. “They need to protect sensitive data to meet compliance requirements, just as they do in traditional finance. On-chain privacy solutions can solve this problem,” he said. “That technology is now possible for the first time, at speed and at scale, and that’s why the narrative is trending. It was a seminal moment, the dawn of a new era for finance.”
As blockchain start ups keep popping up …
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