Market Overview for Privacy Tokens
Privacy tokens were initially moving against headwinds in the digital asset market over the past 24 hours, but are now struggling to sustain the positive momentum.
Bitcoin is still counting a 2.3% loss in the last 24 hours, dragging down most altcoins in the top ten market cap with it by over 3%. The bloodbath was visible in several privacy tokens, many of which have posted deeper day-to-day losses.
The sector’s bellwether Monero was trading near $621, down about 1% on the hour. However, the coin was the first of two top-ranking privacy coins to peak its intraday value, climbing 6% during the period. The overall market cap for these tokens has dropped by 1.84% to $69 billion, while their market volume has spiked by 90% since Monday’s Asian trading session began.
Performance of Large-Cap Privacy Coins
Zcash, Litecoin, Dash, and Starknet Shed Profits
Several large-cap privacy coins are deep in the red zone as of the time of this reporting, with popular coins like Zcash slipping 5.9% in the last day. The token has now lost close to 8% on a weekly basis, and is now 93% shy of its $5,941 all-time high level.
Litecoin, which is grouped with privacy assets due to its optional anonymity features, traded near $69.80, down around 0.8% on the hour and 6.28% from Sunday.
Mid-cap privacy token Dash changed hands near $77.60 after dropping about 2.7% in the last hour, even as analysts deem its longer-term performance as positive. Midnight traded near $0.058, slightly lower on the hour and shedding over 5% on the day. Tezos slipped modestly to around $0.58, showing a small hourly gain but a 3% downtick in the same period.
Other tokens like Canton fell by a modest 0.66%, while Starknet slumped by 4% to $0.08. Humanity Protocol was the second coin in the top 10 to post gains, adding 6% to its 24-hour lows, and is now trading at $0.19.
Top Gainers and Outliers in the Privacy Coin Sector
Privacy Coin Top Gainers Reap Significant Profits
While the leading privacy coins moved lower, some smaller tokens posted outsized gains over the same period. ARPA traded near $0.022, jumping more than 14% on the hour and posting an uptick of close to 70%.
Real-world asset permissionless layer-1 network Dusk was the second top profit generator, trading around $0.228 after surging 48% in the day and 230% over the past month. Mind Network also attracted the market, climbing more than 14% in the hour to about $0.215, taking its market cap to $68 million.
Factors Influencing Privacy Token Performance
The uneven performance in privacy tokens is against the backdrop of a market downturn marred by geopolitical issues between the West and Europe. US President Trump has threatened to impose trade tariffs on several EU countries, likely causing investor jitters on crypto assets and pushing gold prices closer to record highs.
Moreover, some jurisdictions are against the privacy features that these tokens carry and have moved to ban them from their crypto-friendly frameworks entirely. In Europe, the EU’s DAC8 directive requires crypto service providers to collect user tax data on January 1, 2026, which would render privacy coins unusable.
As reported by Cryptopolitan, the Dubai Financial Services Authority implemented an updated crypto framework in the Dubai International Financial Centre that prohibits privacy token trading, promotion, fund activity, and derivatives.
To the eyes of the traders, the bans were a silent confirmation that privacy is significant enough to regulate, a signal that had fueled speculative demand before market headwinds took hold.
Historical Context and Recent Developments
Just five days ago, Monero had pushed into new all-time-high territory to the $798 price level. The positives did not trickle down to Zcash, which, after a strong run into year-end, entered 2026 under dark clouds after the entire development team at the Electric Coin Company resigned on January 7.
The team resonated its departure to a “constructive discharge” and accused board members of “clearly going against the mission of Zcash.” ZEC is heavily bearish on charts and is down 50% from its 12-month peak reached two months ago.