DASH Faces Three Hidden Risks That Could Surprise Holders

Dash (DASH), recognized as the third-largest privacy coin by market capitalization, following XMR and ZEC, is currently confronting a series of risks that holders may be neglecting. While there is a positive discourse surrounding privacy coins, such discussions may be overshadowing these crucial warning signs.

Key Takeaways

Dormant Coins Reactivated: A significant resurgence of long-dormant DASH coins was observed, indicating potential distribution by early investors.
High Whale Concentration: The top 100 DASH wallets now control over 41% of the total supply, the highest level in over ten years, raising concerns about market volatility.
Rising Open Interest in Derivatives: Open interest in DASH derivatives has seen an all-time high, increasing liquidation risks for traders and potentially impacting the spot market.

These warning signals could serve as essential reminders, indicating potential repeat patterns from the past that might lead to losses for DASH holders.

Reactivation of Dormant DASH Coins Signals Possible Distribution

In November 2025, there was a notable wave of reactivation among long-dormant DASH coins. This event pointed towards a shift in how holders were acting. When significant portions of old supply are reactivated, it usually indicates that early investors and long-term holders are starting to distribute their coins, particularly as markets approach their peaks.

The Coin Days Destroyed (CDD) metric is a key indicator of this behavior. It calculates the volume of coins multiplied by the duration they remained inactive. A spike in this metric often signifies that a large number of previously dormant coins are returning to circulation.

Historically, surges in the CDD metric have frequently coincided with price peaks in cryptocurrency markets.

DASH CDD Multiple. Source: Alphractal

As João Wedson noted, “DASH — long-dormant coins saw significant reactivation in November, but activity has since tapered off. Historically, substantial movements of long-inactive supply appear near the tops of market cycles.” Even though the reactivation activity is in decline, this does not automatically suggest that risk is dissipating. Distribution phases can extend for weeks or months, enabling large holders to exit their positions discreetly, potentially exerting considerable downward pressure on prices over time.

Increasing Concentration Among DASH Whales

The second significant risk is the increasing concentration of supply among DASH holders. Currently, the top 100 richest DASH wallets control more than 41% of the total supply—this is the highest concentration seen in over ten years, based on data from Bitinfocharts.

Dash Top 100 Richest Addresses to Total Coins. Source: Bitinfocharts

Data shows a steady rise from 15.5%, the level noted when DASH reached its peak price in December 2017.

While a high concentration of supply can stabilize the market if large investors maintain their confidence, it also presents substantial risks. A few addresses holding a large share of assets can heavily influence market movements. Whether through coordinated or accidental selling, these "whales" can flood the market, leading to sharp price declines, which may also affect derivatives markets.

Surge in DASH Open Interest Raises Liquidation Concerns

Finally, the third risk emerges from the burgeoning open interest in DASH within derivatives markets. Although DASH is currently trading at about half its price from November, near $150, open interest has soared above $180 million—twice the level seen in November and marking a record for DASH.

Dash Open Interest. Source: Coinglass

This trend indicates an unprecedented level of leveraged exposure among DASH traders, creating an ideal situation for large-scale liquidations. Such events can spill over into the spot market, further impacting prices.

Moreover, a recent report by BeInCrypto pointed out a shift in capital towards lower-cap privacy coins. This could imply diminishing investor confidence in large-cap assets, posing additional challenges for DASH in maintaining upward momentum in the upcoming month.