Some cryptocurrencies that offer a high level of privacy have been performing very well in the markets lately.
At this point, however, two questions arise.
The first reason is why privacy coins are performing so well, especially considering that the overall crypto market is not.
The second question is whether this trend will last or not.
Summary
The Performance of Privacy-Related Cryptos
The largest crypto in the world related to privacy by market capitalization has become Zcash.
Its all-time high price is theoretically far from current levels, but that price was merely an error at the time of listing.
It is advisable to take as a reference the over $700 reached in January 2018.
In this November 2025, the price of Zcash has returned to those levels, although it has not managed to surpass them.
It should be noted, however, that in 2020 it had plummeted below $50, and in 2023 it had even sunk to $20.
In fact, until September of this year, it was still below the $50 mark reached as the lowest peak in 2020.
However, starting from October, it began a remarkable rally lasting more than a month and a half, which led to a significant leap, effectively returning to all-time highs, excluding the erroneous quotation from 2016.
However, other privacy coins are also performing well, particularly Monero and Dash.
XRM is up +74% year-to-date, although only +10% compared to thirty days ago, yet it remains -35% from its all-time highs.
Dash is also up +74% since the beginning of the year, with a +50% increase in the last thirty days. However, it is still down -96% from the all-time highs recorded in December 2017.
The Reasons Behind the Rally
The reasons for this rally can be found precisely in the nature of these high-privacy cryptos.
Firstly, there have been growing concerns recently that authorities may significantly expand their surveillance on the use of cryptocurrencies.
Many prominent influencers in the crypto sector have amplified this narrative, generating significant interest in these cryptocurrencies.
However, there is also a technical reason: this November, Zcash underwent a halving, and as often happens in these cases, prices rise. Additionally, Zcash recently announced cross-chain integrations, such as the Zashi wallet with NEAR Intent, for private transfers without going through centralized exchanges.
However, it is also possible that the difficulties in the crypto market have actually helped, as they have triggered a capital rotation seeking the currently best-performing alternatives within the same crypto market.
All this has triggered a kind of speculative rush towards privacy coins.
Will It Last?
The issue lies precisely in the speculative rush caused by the rotation of capital.
Just as in recent weeks there has been a flight towards privacy coins in the struggling crypto market, if Bitcoin and the major altcoins recover, it is not out of the question that the rotation could reverse.
Moreover, the halving of Zcash occurred on November 18, and since then its price has not yet managed to climb back above $710.
This leads to the possibility that the hype will eventually fade, potentially causing the burst of the speculative bubble.
Indeed, the rally in Zcash’s price over the past two months appears to be a speculative bubble, and if the capital rotation were to reverse at this point, it seems very likely that this bubble would burst.
In fact, given that this recent rally has been even more parabolic than that of 2017, the likelihood that it was generated by a speculative bubble seems very high. It is worth remembering that at the time, it dropped from $700 to $50 in about two years.
