If we leave aside US President Donald Trump and his statements about China, we also see interesting increases in the cryptocurrency market. One of the notable movements in the cryptocurrency market in recent weeks has been the rise of privacy-focused cryptocurrencies.
Zcash (ZEC), in particular, attracted the attention of investors again by gaining approximately 350 percent in value in just two weeks. ZEC, which was traded at $40 levels about two months ago, reached a multi-year peak, rising above $268 in a short time. This rapid rise was also supported by social media posts of prominent figures such as Helius founder Mert Mumtaz.
“Privacy Season” Comment from Experts
ZEC’s climb triggered a chain rally in other privacy coins. Railgun (RAIL) attracted attention with a 185 percent increase in the last seven days. Dash (DASH), one of the popular privacy coins of the period, gained 38 percent in value in just 24 hours. Firo (FIRO), on the other hand, doubled its price overnight and reached $ 1.65. Of course, the recent decline also affected privacy-focused coins.
The re-emergence of privacy coins, which had been silent in the crypto market for a long time, was an expected development, according to some experts. Simon Dedic, co-founder of Moonrock Capital, said in his social media post, “After 16 years of crypto history, the masses have finally realized privacy as an exciting use case. Privacy season has begun, albeit late.” he said.
Privacy coins like Zcash and Monero (XMR) use proprietary technologies built around the ability to untrace transactions. Thanks to these structures, it is not possible for third parties to see the transaction amount, addresses or time. However, these features attract the reaction of some regulatory institutions. Increasing controls on privacy coins, especially in the USA and Europe, have made it difficult for these assets to be listed on exchanges.
Privacy Coins are on the Agenda Again
The rise of ZEC has mobilized not only individual investors but also corporate markets. Tornado Cash’s Torn token and Monero have also come to the fore with increases of up to 40 percent in recent weeks. On the other hand, it is noteworthy that investors in Asian markets, especially Japan and South Korea, are turning to privacy coins. This shows that privacy-themed crypto assets are entering a process of revaluation.
This rally initiated by Zcash proves that the concept of privacy still has strong potential in the crypto market. However, regulatory pressure and money laundering concerns continue to threaten the long-term stability of these assets. Although privacy coins offer high profit opportunities for investors, they should also be seen as an investment area that carries high risks.
