Low-Cap Privacy Focus: Why Investors Are Moving From ZEC and DASH to COTI

There's a notable shift in interest towards low-cap privacy altcoins. In the past month, investments have transitioned away from larger-cap cryptocurrencies like Zcash (ZEC) and have recently started flowing into mid-cap coins like Dash (DASH). This month, the spotlight has turned to lower-cap projects such as Coti (COTI).

Key Takeaways

Interest in low-cap privacy coins like Coti (COTI) is growing as investments shift from larger coins like ZEC and DASH.
COTI has seen impressive market gains, with a 54% increase recently and a rise in daily active addresses, indicating enhanced user activity.
Analysts believe COTI's upward trajectory may continue, buoyed by favorable market conditions.
The preference for smaller-cap coins can indicate investors’ perception of larger coins as fully valued, marking a typical phase in the capital rotation cycle in the crypto market.

What factors are currently boosting investor confidence in Coti? How long might this upward trend continue? Let's examine the details.

COTI’s Exceptional Month

Coti (COTI) is a blockchain platform that emphasizes privacy through the use of Garbled Circuits technology, allowing users to manage their data with greater control and flexibility.

Since its launch in 2019, COTI initially focused on speedy and economical payment processing. Recently, it has strongly shifted its focus toward privacy solutions and is now integrated with over 70 blockchain networks, including Ethereum.

“Privacy isn’t just an upcoming trend. It’s the essential infrastructure that will unlock the next trillion in on-chain value. Real-World Assets (RWAs), decentralized finance (DeFi), and AI agents all depend on Programmable Privacy. Investors are starting to understand this reality,”
— stated Shahaf Bar-Geffen, CEO of Coti.

This strategy has led many investors to believe that COTI possesses a competitive edge compared to other privacy coins like Zcash. Additionally, the recent rally of ZEC has also motivated current COTI holders.

As of the latest reporting, COTI has surged over 54% in the last 24 hours, becoming the top-performing altcoin in CoinGecko’s Privacy Blockchain Coins category. Privacy Blockchain Coins. Source: CoinGecko

COTI's market capitalization climbed from $65 million to $127 million in November. Despite this growth, it still remains significantly lower than billion-dollar players like DASH and ZEC.

In a bullish market, the rise of low-cap altcoins often generates optimism among investors. Historical data indicates that COTI previously achieved a market cap of $1.6 billion in 2017. The rally in November has rekindled investor hopes for a return to those heights.

Supporting this optimism, on-chain data reflects that the number of daily active addresses on the COTI network has reached its highest level in six months, indicating increased real-world utilization. Daily Active Addresses on The COTI Network. Source: Cotiscan

In April, the COTI network had approximately 100 active addresses each day. This figure has now risen to over 650 and continues to grow as we move into October.

While this increase signals rising user interest, it remains modest when considering COTI's long-term potential.

Further data from Cotiscan depicts a steady growth in total accounts, which have now surpassed 17,000—indicating consistent growth over the last six months. Number of Coti Accounts. Source: Cotiscan

COTI is currently processing more than 22,000 transactions each day, having completed nearly 59 million total transactions on the platform.

Analysts suggest that COTI's upward trend may not be finished yet. Technically, the chart displays a bullish falling wedge pattern. Following a brief correction, prices could continue to rise toward the $0.08 mark.

While the influx of capital into lower-cap privacy coins can signal excitement, it can also act as a warning. This trend suggests that investors may perceive larger and mid-cap privacy coins as fully valued, prompting a search for smaller caps as a potential last opportunity.

Such behavior is often indicative of a classic phase in the cryptocurrency capital rotation cycle, where focus shifts from larger established coins to smaller, more speculative assets prior to overall market consolidation.