Investor demand for financial privacy is fueling a rally in privacy-preserving cryptocurrencies, signaling renewed interest in self-sovereign blockchain transactions.
The market capitalization of privacy-focused cryptocurrencies rose by about 80% over the past week, briefly surpassing $24 billion earlier on Monday before retracing 2.9% to $23.7 billion at the time of writing, according to data aggregator CoinGecko. Dash (DASH) and Zcash (ZEC) were among the best-performing privacy coins last week, posting gains of 65% and 9.55%, respectively.
This privacy coin rally occurred despite a wider crypto market downturn, which saw the total crypto market cap decline by 3.7% over the past week, from $3.96 trillion to $3.81 trillion. This trend highlights the increasing investor demand for financial privacy amid broader market challenges.
Privacy coins such as Zcash and Monero (XMR) obscure sender, receiver, and transaction details, offering greater anonymity than pseudonymous cryptocurrencies like Bitcoin (BTC). Unlike Bitcoin’s transparent ledger, these coins prioritize user privacy by concealing transaction information.
**Investors Seek Financial Privacy: “Encrypted” Bitcoin**
“Privacy is increasingly viewed as a necessity rather than a feature,” Jake Kennis, senior research analyst at Nansen, told Cointelegraph. He added that this shift is renewing ideological demand for private, self-sovereign transactions.
Kennis noted that the expansion of Zcash’s shielded pool, along with technological improvements—including the Zashi wallet for shielded transfers and integration with the Solana blockchain—are making privacy transactions more accessible to users.
Zcash’s fixed supply of 21 million coins, its proof-of-work (PoW) consensus model, and its privacy features based on zk-SNARK technology position it as an “encrypted Bitcoin” for investors seeking private transactions.
Zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) are cryptographic primitives that enable verification of data between two parties over a public blockchain without revealing the underlying information, thereby strengthening digital privacy. They are a key application of zero-knowledge proof technology.
**Zcash Surges to Eight-Year High Amid Bullish Predictions**
Zcash surged to an over eight-year high of $388 on Friday, briefly overtaking Monero as the most valuable privacy coin. The rise came days after BitMEX co-founder Arthur Hayes predicted a ZEC token rally to $10,000, fueling further excitement around the token.
Following Hayes’s bullish forecast on Sunday, Zcash rallied from $272 to a peak of $355 within hours, demonstrating strong market enthusiasm for privacy-focused cryptocurrencies.
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As investor interest in financial privacy grows, privacy-preserving cryptocurrencies like Zcash and Dash continue to attract attention, suggesting a robust future for self-sovereign, encrypted blockchain transactions.
https://bitcoinethereumnews.com/bitcoin/privacy-coins-surge-80-crypto-investors-seek-privacy-encrypted-bitcoin/?utm_source=rss&utm_medium=rss&utm_campaign=privacy-coins-surge-80-crypto-investors-seek-privacy-encrypted-bitcoin
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