Privacy tokens are taking center stage this week, the fallout of the slump affecting the broader cryptocurrency market.
Prominent commentators in the cryptocurrency space have been predicting a spike in privacy coin prices for months. Their projections now appear to be coming true.
Some have wondered if there hasn’t been a coordinated effort to pump up privacy prices. The executive director of the Zcash Foundation, Alex Bornstein, has told Cointelegraph that Zcash’s recent success is due to broader concerns about governments infringing on users’ right to privacy.
A combination of hype and technicalities have brought privacy coins back into the limelight of other struggling coins.
Zcash
Privacy Coin Zcash (Zec) has made impressive gains, with its market capitalization up more than 10% over the past week. Zcash’s price has reached more than 76% in the last seven days to $ 632. This Flipped Monero (XMR) to become the largest privacy coin by market capitalization.
The price increase follows significant upgrades made by the network’s developer, the Electric Coin Company. At the beginning of the month, the company Cross-chain swaps and private payments are introduced by integrating in the transaction layer near the intentions.
The merger resulted in a spike in the amount of zcash in close proximity and an expansion of the “shield pool” – that is, the collection of encrypted addresses where ZEC is stored.
Bornstein told Cointelegraph of the chain’s reaction That “there’s just a strong narrative, and I think people are just waking up to what Zcash can really do.”
Related: Why Zcash and privacy tokens are back in the conversation
Monero
Monero (XMR), which until recently was the largest privacy coin on the market, has seen a near 10% price gain over the past week. Its market capitalization rose 2.7% to $6.62 billion.
On October 8, the Monero Blockchain introduced the Flourine Fermi update to the network, which aims to provide users with greater security against “spy nodes.”
In Monero Vernacular, spy nodes are malicious nodes, groups of nodes or botnets that can calculate transactions and match them to addresses on the Monero network.
Related: Monero releases Flourine Fermi update to combat spy nodes
As privacy coins become increasingly difficult to use amid delisting exchanges, regulations and the aforementioned spy nodes, the Monero community has fought to keep the blockchain private.
It also established safety protocols. In late 2024, Monero Research Lab suggested Allows node operators to compile a ban list of suspected spy nodes based on their IP addresses.
Dash
The price of the privacy coin dash (Dash) was up more than 130% on the week, ending a seven-day period just north of $107.
On November 2nd, Aster Dex was decentralized launched Dash Perpetual futures trading with 5x leverage. The listing on the new exchange boosted liquidity and visibility for the token. Analysts noted that part of the price increase can be attributed to the current narrative surrounding privacy coins.
ZKSYNC
The price of the privacy coin zkync (Zk) was up 113% to trade at $0.063 by the end of the week.
ZKSYNC, an Ethereum layer 2 that uses zero-knowledge (ZK) rollup to process offchain transactions, may soon see major changes to its governance token.
On Tuesday, ZKSYNC co-creator Alex Gluchowski Argued that the network has changed significantly from the project’s inception, saying that it now hosts several interconnected zero-knowledge chains.
Related: ZKSYNC CREATOR floats token management to add ‘economic utility’
He said“The goal is to align use with value, make decentralization economically viable, and ensure that the network gets a meaningful share of the economic benefits it creates.”
To accomplish this, Gluchowski proposed changes to tokenomics, saying that it should derive value onchain from fees generated from “interoperability and other key settlement and messaging functions” and offchain through licensing agreements for “business software components.”
He also suggested licensing deals when big businesses adopted the network. “When such capabilities are funded by the ecosystem, it makes sense that their use by business participants returns value to the ecosystem.”
DECRED
DECRED’s (DCR) Price has also been torn apart this week. The token surged on Monday before settling but ended the week up 90% at $30.
Decred’s price has been in a fairly narrow range for the past two years. The recent price surge is suggested by a narrative driven increase as Other privacy token prices are pumped.
On November 3, CoinmarketCap acknowledged Desred as a privacy coin, which has also drawn attention to its staking structure and management. The network use A hybrid proof-of-work (POW) and proof-of-stake (POS) mining system to “ensure that a small group cannot dominate the flow of transactions or make changes to decred without community input.”
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