5 Privacy Coins Gaining Momentum This Week

Privacy coins are experiencing a boost this week, standing out amidst the downturn affecting the wider cryptocurrency market. Experts in the crypto space have been forecasting a rise in privacy coin values, and their predictions are starting to materialize. There are suggestions that this surge might be due to a concerted effort to elevate the prices of these coins. Alex Bornstein, the Executive Director of the Zcash Foundation, noted that Zcash's recent success correlates with growing concerns over governmental encroachments on personal privacy. As other cryptocurrencies face challenges, excitement and technical advancements have brought privacy coins back into focus.

Key Takeaways

Privacy tokens are seeing a significant rise this week.
Zcash has surpassed Monero to become the leading privacy coin by market cap.
Monero has updated its network to enhance privacy and security.
Dash's value increased considerably due to new trading opportunities on decentralized exchanges.
ZKsync is experiencing major changes to its governance that could enhance its economic viability.
Decred has gained attention for its innovative staking and governance model.

5 privacy coins that are pumping this week

Zcash Soars

Zcash has experienced remarkable growth, with its market cap increasing by more than 10% in the past week. The coin's price has jumped over 76% in just seven days, reaching $632, making it the largest privacy coin by market capitalization, overtaking Monero.

Zcash price saw gains of over 75% on the week. Source: CoinMarketCap

This surge follows significant improvements from its developer, the Electric Coin Company. At the start of the month, they launched cross-chain swaps and private payments by integrating with the transaction layer Near Intents. This development led to an increase in Zcash's transaction volume and enhanced the “shielded pool,” which refers to the group of encrypted addresses where ZEC tokens are stored. Bornstein expressed optimism, stating, "there’s just a powerful narrative, and I think people are just waking up to what Zcash can really accomplish."

Related: Why Zcash and privacy tokens are back in the conversation

Monero's Steady Climb

Monero, which had long been the top privacy coin, saw a nearly 10% price increase over the last week, raising its market capitalization by 2.7% to $6.62 billion.

Monero price closed the week with more modest gains than Zcash. Source: CoinMarketCap

Recently, Monero implemented the Flourine Fermi update aimed at improving user security against "spy nodes." In Monero terms, these spy nodes represent malicious networks capable of tracking transactions and linking them to specific addresses. As privacy coins face challenges like delistings and regulatory hurdles, the Monero community remains dedicated to keeping its network private, even developing safety protocols. In late 2024, the Monero Research Lab proposed a system allowing node operators to maintain a ban list of suspected spy nodes based on IP addresses.

Related: Monero releases Flourine Fermi update to fight spy nodes

Dash's Surge

Privacy coin Dash has seen an impressive increase of over 130% this week, closing the seven-day span at just above $107.

Dash’s price closed the week above $100. Source: CoinMarketCap

On November 2, the decentralized exchange Aster DEX introduced Dash perpetual futures trading with 5x leverage. This listing has contributed to enhanced liquidity and visibility for the token, with analysts noting that the current hype surrounding privacy coins has also driven the price upward.

ZKsync's Increasing Value

ZKsync, another privacy coin, saw its value increase by 113%, trading at $0.063 at the week's end.

ZKsync’s price spiked at the beginning of November. Source: CoinMarketCap

This Ethereum Layer 2 solution utilizes zero-knowledge (ZK) rollups for off-chain transaction processing and is on the verge of significant changes regarding its governance token. Co-creator Alex Gluchowski shared this week that the network has evolved to include multiple interconnected ZK chains. He emphasizes the need to make decentralization economically sustainable while ensuring the network captures a fair share of the value it generates.

Related: ZKsync creator floats governance token revamp to add ‘economic utility’

Decred's Recent Upsurge

Decred has also caught the attention of the crypto community this week, with its price soaring by 90% to reach $30.

DCR’s price spiked above 60% on Nov. 4. Source: CoinMarketCap

For much of the past two years, Decred's price remained stable within a limited range. The recent surge indicates a narrative-driven increase, coinciding with the rise of other privacy tokens. On November 3, CoinMarketCap acknowledged Decred as a privacy coin, drawing attention to its staking and governance features. Decred utilizes a hybrid proof-of-work (PoW) and proof-of-stake (PoS) system to prevent any small group from dominating transaction flow or altering the network without community input.

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