Zcash and Dash surge against the trend! Privacy Coins ignore the market crash and soar 201% this week.

Privacy-focused Crypto Assets Dash (DASH) and Zcash (ZEC) continue to rise against the trend, maintaining their upward momentum on November 4th, even as the broader cryptocurrency market retraced. They rank at the top of today's popular Crypto Assets list. According to Artemis data, the market capitalization of Privacy Coins briefly surpassed $25 billion, highlighting investors' strong interest in this sector, as the zone's monthly return rate approaches 80%.

Dash weekly pump 201% reached a new high since 2021

(Source: CoinMarketCap)

According to data from CoinMarketCap, Dash has pumped by 68% in the past 24 hours and achieved an impressive 201.5% increase this week. This explosive growth has made Dash one of the best-performing Crypto Assets of the week, even surpassing many popular meme coins and emerging public chain tokens. In terms of market capitalization, Dash has returned to the ranks of mainstream coins.

On-chain indicators further indicate a bullish outlook for these Privacy Coins. The on-chain transaction volume of Dash surged to $1.44 billion on Tuesday, reaching its highest level since May 2021. This data is highly compelling, as the spike in volume reflects genuine market participation and capital inflow, rather than mere price manipulation. The daily trading volume of $1.44 billion relative to a market capitalization of $1.78 billion indicates a turnover rate of nearly 81%, a remarkably high turnover rate that reflects the market's frenzied sentiment.

May 2021 marked the peak of a bull market in the crypto market, with Dash's trading volume returning to that level, indicating that the current enthusiasm is approaching a historic moment. However, this also requires caution, as immediately following May 2021 was the “519 crash,” where trading volumes often hit new highs right before a trend reversal. Investors need to be especially careful when chasing highs and set strict stop-losses to guard against sudden reversals.

As an established Privacy Coin, Dash's technical features include the PrivateSend mixing function and InstantSend instant transaction confirmation. These features not only provide privacy protection but also offer an excellent payment experience. In the context of increasingly stringent regulatory environments and heightened user privacy awareness, Dash's privacy protection capabilities have regained market attention. Moreover, Dash's decentralized governance system (masternode voting) enables it to quickly adapt to market demands and promote technological upgrades.

Dash explosive growth data

24-hour pump: 68%

Weekly Pump: 201.5% (one of the best performing coins this week)

Current market capitalization: 1.78 billion USD

Daily Trading Volume: 1.44 billion USD (new high since May 2021)

Turnover Rate: Approximately 81% (Extremely Active)

Historical Comparison: Trading volume returns to the peak levels of the 2021 bull market

The catalysts for this explosive growth are multifaceted. First is the awakening of privacy demands; in the context of increasing data breaches and government surveillance, users' need for financial privacy is rising. Second is the expectation of technological upgrades, with the Dash community discussing several proposals for technological improvements. Third is the capital rotation effect: when Bitcoin and Ethereum are stuck in volatility, funds often seek new speculation themes, and Privacy Coins have become the focus of this round.

Zcash monthly pump 80% leads the Privacy Coin track

(Source: CoinMarketCap)

Zcash has increased by 22% in the past 24 hours and has gained 43% this week. Although the increase is not as extreme as Dash, Zcash's performance is equally noteworthy. Zcash's market capitalization has reached $7.78 billion, more than four times that of Dash, showing its leading position in the Privacy Coin sector is becoming more solid. Zcash's trading volume has also climbed to $1.35 billion, continuing to grow since late September. The surge in trading activity highlights traders' increasing interest in these two Crypto Assets and the improvement in liquidity, thereby enhancing their upward momentum.

With a daily trading volume of 1.35 billion USD relative to a market capitalization of 7.78 billion USD, the turnover rate is approximately 17%. Although this turnover rate is far lower than Dash's 81%, it still belongs to a very active level. In contrast, Bitcoin's daily turnover rate typically ranges between 2-5%. Zcash's relatively moderate turnover rate may reflect a more stable holder structure, with more long-term believers rather than short-term speculators.

The technical advantage of Zcash lies in its zero-knowledge proof technology (zk-SNARKs), which is one of the most advanced cryptographic technologies in the field of privacy protection. Unlike Dash's mixing mechanism, Zcash's zero-knowledge proof can verify the validity of transactions without revealing any transaction details. This technology is not only used for Privacy Coins but is also adopted by projects like Ethereum Layer-2, demonstrating its technical value is widely recognized.

The performance chart of the Artemis data zone shows that Privacy Coins have outperformed the market, achieving a return rate of 79.7% over the past month. This data places the performance of Dash and Zcash within the broader Privacy Coin zone. The 79.7% monthly return not only exceeds the performance of Bitcoin and Ethereum but also surpasses most mainstream coins and popular narrative zones. This strong sector-wide surge indicates that Privacy Coins are experiencing a collective influx of capital and market attention.

Zcash Steady Growth Data

24-hour pump: 21%

Weekly Pump: 43%

Current market capitalization: $7.78 billion (Privacy Coin leader)

Daily Trading Volume: 1.35 billion USD (continuously growing since September)

Turnover Rate: About 17% (active but relatively stable)

Zone Return: Privacy Coin increased by 79.7% this month (leading the market)

Zcash's relatively stable performance compared to Dash may make it a better choice for conservative investors. Although the short-term pump is smaller, its larger market capitalization, more reasonable turnover rate, and solid technological foundation make Zcash's rise more sustainable.

The Deep Reasons Behind Privacy Coin Market Capitalization Surpassing 25 Billion USD

According to CoinGecko data, the total market capitalization of Privacy Coins exceeded $25 billion on Tuesday, going against the trend as the price of Bitcoin fell below $107,000. Even as the overall crypto assets market declined, the total market capitalization of Privacy Coins briefly surpassed $25 billion. This counter-trend performance is extremely rare and usually only occurs during market rotations or when significant catalysts arise in specific zones.

The collective explosion of Privacy Coins has several deep-rooted reasons. First is the contradictory effect of the regulatory environment. Although multiple countries have imposed restrictions or even bans on Privacy Coins, this crackdown instead highlights the value of privacy protection. The more governments attempt to monitor and restrict, the more it proves the necessity of Privacy Coins. This “the more you ban, the more appealing it becomes” logic has been seen throughout history.

Secondly, there is the uncertainty of the macro environment. When multiple negative factors such as the Federal Reserve turning hawkish, government shutdowns, and DeFi protocols being hacked come into play, investors seek safe havens but do not want to completely exit the crypto market. Privacy Coins provide a unique option: they are both Crypto Assets and possess certain characteristics of traditional safe-haven assets (such as the ability to resist regulation). This special positioning actually attracts funding during market panic.

The third is the return of the technical narrative. After experiencing multiple rounds of narratives such as DeFi, NFT, GameFi, and AI Agent, the market is beginning to return to one of the essential values of crypto assets: financial privacy. Zcash's zero-knowledge proof technology and Dash's instant transaction feature both represent core innovations in encryption technology. When the market becomes fatigued with new narratives, returning to the essence of technology often sparks a new wave of attention.

The fourth is the effect of capital rotation. When mainstream coins are in a state of fluctuation, a large amount of capital needs to find new speculative targets. Privacy Coins, due to being long neglected and having relatively small market capitalization, can be easily driven by funds to produce explosive increases. Once Dash and Zcash start to rise and attract market attention, the FOMO (Fear of Missing Out) sentiment will draw in more capital, forming a self-reinforcing upward cycle.

The fifth is the catalytic effect of exchanges listing. Several mainstream exchanges have recently re-listed or added trading pairs for Privacy Coins, providing a convenient channel for capital inflow. In the past, some exchanges delisted Privacy Coins due to regulatory pressure, but with changes in the regulatory environment and advancements in compliance technology, Privacy Coins are making a comeback into the mainstream.

Opportunities and Risks of Investing in Privacy Coins

For investors considering participating in the Privacy Coin market, it is essential to balance opportunities and risks. On the opportunity side, if this rally of Privacy Coins marks the beginning of a sector-wide bull market, we may still be in the early stages. A monthly return rate of 79.7% is indeed astonishing, but it is not unsustainable in a crypto bull market. During the 2017 bull market, Dash soared from $11 to $1,500, with an increase of over 13,000%. If the current situation is the starting point of a similar rally, there is still a vast potential ahead.

Risk factors cannot be ignored. Firstly, there is regulatory risk; Privacy Coins have always been a key focus for regulatory authorities and may face new restrictions or bans at any time. Secondly, there is the risk of technical pullbacks; after such a dramatic rise, profit-taking pressure is bound to accumulate. Thirdly, there is liquidity risk; although current trading volumes are at record highs, liquidity may quickly dry up during a market reversal, leading to a sharp price drop.

For short-term traders, you can participate with small positions during a pullback and set strict stop-losses (recommended 10-15%). For medium to long-term investors, you can wait for clearer trend confirmation signals, such as a retest confirmation after breaking through previous highs. Avoid going all-in at the current position chasing highs, as extreme fluctuations after significant pumps are the norm.