Privacy Coins on the Rise: Monero Reaches All-Time High, Dash Records Over 50 Percent Gain

Privacy coins have undergone a remarkable development in recent days, while the rest of the crypto market has largely been trending sideways. Monero and Dash in particular are recording significant price gains, while the formerly dominant privacy coin Zcash is struggling with internal problems.

Monero Marks New All-Time High

The privacy coin Monero (XMR) gained 13 percent within 24 hours, reaching a new all-time high of $686 ^[1]. Daily trading volume exploded by more than 150 percent to over $500 million ^[1]. With a market capitalization of nearly $13 billion, Monero now ranks 11th among the most valuable cryptocurrencies worldwide ^[1].

The cryptocurrency, which has existed since 2014, consistently focuses on privacy and anonymity. Unlike Bitcoin or Ethereum, the sender, recipient, and amount of a transaction are hidden by default in Monero ^[1]. The open-source project is supported by a global developer community and has no central authority or foundation ^[1].

Capital Rotation from Zcash Drives Market

The strong performance of Monero and other privacy coins suggests a rotation out of Zcash ^[1]. The privacy coin that had been dominant for months has been caught up in drama surrounding its developers, who have split from the foundation behind the coin due to disagreements ^[1]. Despite the split, the developers continue to work on the project ^[1].

These internal conflicts have shaken confidence in Zcash and caused capital to flow into other privacy coins ^[2]. Monero's market capitalization is now twice as high as that of Zcash ^[1].

Dash Benefits with Over 50 Percent Gain

One of the biggest beneficiaries of this capital rotation is Dash, one of the oldest representatives in the privacy coin segment ^[2]. Over the past 12 to 24 hours, the price showed extreme movement between a low of around $39 and a high of approximately $68 ^[2]. Dash currently trades at around $66, representing a gain of over 50 percent within 24 hours ^[2].

Dash's market capitalization stands at approximately $816 million ^[2]. The price has moved significantly above its short-term average level and is forming higher highs and higher lows, indicating a short-term trend reversal ^[2].

Technical Perspective and Risks

From a technical perspective, the short-term outlook for Dash remains positive, supported by strong upward momentum and a clear breakout above important levels ^[2]. Important support levels are located in the area around $49 as well as at approximately $44 ^[2]. On the upside, the recent daily high of around $68 represents the next resistance ^[2].

However, volatility is currently exceptionally high, which increases both opportunities and risks ^[2]. The price is considered overbought in the short term, suggesting quick gains but also possible pullbacks ^[2].

Regulatory Challenges

Despite the current rally, privacy coins face regulatory challenges. Monero has already been banned in some countries and delisted from several major crypto exchanges due to its privacy features ^[1]. While supporters view the coins as digital cash, critics point to potential abuse risks ^[1].