Bitcoin’s declining rally and consecutive losses over the past week have helped Altcoins shine. While AVAX and CRO are among the few bullish altcoins, some have surprised the market, like ZEC.
For the past 4 days, ZEC has outperformed the major Altcoins and even Bitcoin in terms of profits (over 50%). This uptrend is part of the recovery process after Electric Coin Company discussed the possibility of moving ZEC from PoW to PoS.
ZEC made up its losses earlier in the week after hitting an ATH of $ 237.69 on Nov 22, amid underperforming much of the market. So, with the rise of ZEC, could the market move in the direction of other prominent privacy tokens like XMR and DASH?
Private token comeback?
July and August are good times for both XMR and DASH, but mostly range trading since September; in fact, the big bull market did little to help the two coins.
Privacy tokens have always been controversial as to whether or not to use them for illegal purposes, despite the unprecedented protection they offer for personal data and other purposes. For the past year, privacy tokens have been rigorously scrutinized by exchanges around the world due to such controversy.
At the same time, Coinbase refused to list XMR, citing regulatory concerns, while Bittrex removed XMR from the list along with ZEC and DASH in early January this year. Kraken recently announced plans to remove XMR from the list in the UK in late November.
While there are many reasons for privacy tokens to go unnoticed, the most famous are the rise of the DeFi sector, the meme coin craze, the Metaverse token explosion, etc. Many people in the market also believe that privacy of tokens is slowly growing irrelevant due to compatibility and interoperability issues.
At the time of writing, both DASH and XMR appear to be following the larger market trend.
Trade euphoria supports rally?
As the price rose, ZEC’s trading volume quadrupled, showing positive retail euphoria. Additionally, the number of ZEC addresses lost / gained shows that 618,3,000 addresses (72.72%) were profitable at that price. However, an interesting trend for both ZEC and DASH is the high retail volume depending on the concentration of owners.
The source: IntoTheBlock
Particularly in the case of assets with a low concentration of supply, the majority of the circulating supply is held by end customers. For example, 49.69% of ZEC supply is held by retailers and nearly 78% of DASH belong to this group.
The source: IntoTheBlock
Hence, retail-driven rallies will be crucial for these coins, while investors and whales have virtually no say.
At the time of this writing, ZEC has some good upside prospects as social sentiment remains high. On the contrary, for both XMR and DASH the price action looks rather weak and neither has a clear direction at the moment.
Retail-driven rallies and enough euphoria could, however, at least support the price of XMR and DASH in the near future.
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According to AMBCrypto