Despite the broader crypto market’s downturn today, privacy tokens like Monero and Dash are moving in a positive direction. While top cryptocurrencies like Bitcoin, Ethereum, and XRP plummeted, these privacy-focused coins posted significant gains, sparking widespread attention.
This significant divergence underscores a shift in trader behaviour as investors look for defensive plays amid rising geopolitical tensions and regulatory uncertainty. As concerns about on-chain surveillance and transparency grow, investors are opting for these tokens, which benefit from renewed demand.
Privacy Tokens are Defying Market Crash
Privacy tokens are experiencing a significant rebound amid the broader crypto market crash. Investors are opting for privacy-focused cryptocurrencies amid rising trade war tensions and regulatory concerns.
Currently, according to the CoinMarketCap data, the crypto market is in the red zone, with the total market capitalization reaching $3.14 trillion, down by 2.54%. Bitcoin, Ethereum, and XRP are struggling to maintain momentum amid this market crash.
As of press time, BTC is valued at $92,944, marking 2.24% decline in a day. But the coin is still up by 2.5% and 5.4% in a week and a month, respectively. After hitting a high of 2-month high of $97k, the cryptocurrency slipped to $93k. As it stands above the critical $90k support, traders remain confident about its potential uptrend.
Ethereum is trading at $3,227, down 2.84%, but up 3.5% in a week and 8% in a month. There is a massive 130% surge in the trading volume, which is now at $27.2 billion. XRP is valued at $1.97, with a significant plummet of 3.5%. Despite a 3.1% decline over the past week, the crypto has seen a marginal 1.3% in a month.
Despite this broader market downturn, privacy tokens are on the rise. Tokens like Monero and Dash have seen significant upticks over the past day, invoking a fresh momentum.
Now, Monero is trading at $638.76, boasting a remarkable uptick of 9% in a day, 10.8% in a month, and a massive 40% in a month. Traders are also showing renewed interest in the token, with the 24-hour volume surging by 10% in a day, reaching $349 million.
At the same time, Dash is currently valued at $80.15, with a marginal 0.35% daily spike. However, the privacy token has seen significant rises of 113% and 104% over the past week and month, respectively.
What Drives This Surge?
Notably, the recent surge in privacy tokens is mainly driven by a broader shift in investor sentiment. According to Rachel Lin, co-founder of SynFutures, the current rally is a result of short-term triggers as well as shifting investor sentiment.
Recently, ZachXBT revealed that large amounts of stolen BTC and LTC were converted to Monero. Lin added that this update has “pushed volumes higher in a relatively thin market and helped drive prices to new highs.”
The surge also implies that investors are looking for defensive positioning amid geopolitical risks. Indian crypto exchange BuyUCoin CEO Shivam Thakral stated,
“Privacy coins tend to move counter-cyclically during periods of heightened uncertainty. The recent gains reflect defensive positioning, not speculative excess.”
US President Donald Trump has announced 10% tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. While the taxes will be effective from February 1, they will be increased to 25% from June 1. These geopolitical tensions have significantly impacted the crypto market, with traders seeking privacy-focused coins.
