Bitcoin’s weakened market rally and subsequent losses last week gave way to altcoins to steal the show. While Avalanche and Crypto.com Coins were among the few top alts to bounce back, some surprised the market like Zcash (ZEC).
For the past four days, ZEC outperformed the major altcoins and even bitcoin in terms of price gains, which saw prices jump over 50% in just four days. That price uptrend was part of a rebound after the Electric Coin Company discussed the prospect of moving Zcash from a proof-of-work to a proof-of-stake.
Source: TradingView
After hitting an ATH of $ 237.69 on Binance on Nov. 22, the Alt also bounced back from losses it suffered earlier this week amid a downward retracement in the larger market. So, with Zcash on the move, can the market also watch out for other prominent privacy tokens like Monero and Dash?
Can privacy tokens make a comeback?
For both Monero and Dash, July and August were the months when the coins made decent gains, but since September the two have had a more or less range-bound move. In fact, the bigger market gains could do very little for the two privacy tokens either.
Despite the unprecedented protection they offer in relation to personal data and other uses, there has been an ongoing debate over the use of privacy tokens for illegal purposes. Last year they were scrutinized by crypto exchanges around the world due to the controversy over privacy tokens.
Last year, Coinbase refused to list XMR citing regulatory concerns, while Bittrex removed XMR, as well as Zcash (ZEC) and Dash, from the list in early January. Recently, Kraken announced its plan to remove Monero from the list for UK customers by the end of November.
While there are plenty of macro narratives as to why privacy tokens appeared to be drowning, the most famous are the rise of the defi sector, meme coin euphoria, the boom in metaverse tokens, and so on. Also, many in the market feel that privacy tokens have not been effective in staying relevant and moving forward as they have faced compatibility and interoperability issues.
Even at the time of writing, both Dash and Monero seemed to be following the bigger market trend.
Retail euphoria supports rally?
As the price rose, ZEC’s trading volume increased four-fold, which is a high level of retail euphoria. In addition, Zcash in and out of the money showed that 618,3,000 addresses or 72.72% of the addresses were in the money, making profits at that price level. However, an interesting trend for both Zcash and Dash was the high number of retail volumes due to the concentration of owners.
Source: IntoTheBlock
In particular, assets with a low concentration of supply have most of the circulating supply owned by retail customers. While ZEC held 49.69% of its supply from retail owners, Dash was nearly 78% of its offerings from retail owners.
Source: IntoTheBlock
This in turn meant that retail rallies were crucial to the movement of these coins, while investors and whales had no say in the situation.
In terms of price, however, ZEC had reasonably good prospects of a rebound at the time of writing as social sentiment remained high for the coin. However, for both Monera and Dash, price action looked rather weak and it appeared the two would lose the act.
Still, retail rallies and enough euphoria could at least fuel XMR and Dash in terms of price in the near future.
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