Key takeaways:

• Privacy-focused cryptocurrencies have skyrocketed, with the sector’s value increasing by almost 80% by November 2025.

• Zcash rose to a seven-year high and Dash to a three-year high as investors turned to privacy assets.

• Technical breakouts, derivative positioning and the upcoming Zcash halving fueled this move.

• Despite the hype, privacy coins face tightening global anti-money laundering regulations and constrained access to exchanges.

Privacy-focused cryptocurrencies are back in the spotlight. At the beginning of November 2025, the sector’s total market capitalization increased almost 80%, briefly surpassing the $24 billion to $25 billion range.

Zcash (ZEC) rose to a seven-year high while Dash (DASH) rose to a three-year high as trading activity accelerated on major exchanges.

The move reflects textbook turnover. The long-term downtrend finally subsided, compact positions were forced to cover, and the anticipation of the upcoming Zcash halving provided a renewed catalyst for investors amid a largely stagnant broader market.

What are privacy coins?

Privacy coins are cryptocurrencies designed to hide some or all of the details of a transaction, including the sender, recipient, or amount. They do this using advanced cryptography or hashing techniques that limit the possibility of links between addresses.

This is a stark contrast to Bitcoin-style public ledgers, where every transaction is evident and analytics firms can often reconstruct users’ identities over time.

Zcash (ZEC)

Zcash supports two modes: crystal clear transfers (evident on-chain like Bitcoin) and shielded transfers, which keep transaction details private. Its privacy features are based on zero-knowledge proofs, originally zk-SNARKs, which enable the network to verify transactions without revealing their contents.

Since the Network Upgrade 5 (NU5) update, Orchard’s shielded Zcash pool uses the Halo 2 validation system: a zero-knowledge protocol that eliminated the previous “trusted setup” ceremony and streamlined private payments. Privacy remains voluntary, allowing users to choose between crystal clear and protected addresses, if desired.

Did you know? Zcash hit a seven-year high near $449, posting triple-digit monthly gains as momentum accelerates.

Dash (DAZKA)

Dash was built for speedy and inexpensive digital payments with optional privacy. Its wallet contains CoinJoin, an unattended hashing mechanism that combines inputs and outputs from multiple users, making it hard to track the history of individual transactions.

CoinJoin works via masternodes and must be manually enabled in your Dash Core wallet. By default, standard transactions remain crystal clear. Users can select the number of hash rounds to perform – additional rounds augment plausible deniability, but also slightly augment processing time and network fees.

So why now?

There are four key factors to pay attention to:

1. A step towards privacy: As blockchain compliance and analytics requirements augment, some investors are turning to assets that offer stronger privacy features. The recent rally suggests that the narrative is speaking again.

2. Technical breaks: ZEC broke out of a multi-year downtrend and gained momentum as it cleared resistance, boosting other stocks as the trend-following screens lit up.

3. Derivatives Feedback: Open interest and volumes skyrocketed, compact positions were forced to cover and funding reversed. This type of fuel can turn a pointed move into a sustained leg higher.

4. Note and conversation: Bold calls from high-profile investors and headlines about multi-year highs have drawn novel interest and capital into the trade, further boosting sentiment.

With this in mind, let’s take a closer look at each of the protocols mentioned earlier.

Dash: How it works, where it fits

In addition to CoinJoin, Dash emphasizes the speed and finality of transactions. InstantSend uses the masternode quorum to block transaction inputs, allowing payment confirmation in seconds. ChainLocks protects the latest block from reorganization, giving sellers greater confidence without waiting for multiple confirmations.

The result is a form of “digital cash” with consumer-grade privacy tools rather than default anonymity. What used to be called “PrivateSend” is simply the same CoinJoin technique. This balance between usability and privacy remains Dash’s main attraction.

Zcash: What’s changed under the hood

The most significant change to Zcash came with NU5/Halo update. By removing trusted configuration and introducing unified addresses that automatically route funds to the appropriate pool, the project made private transactions both more powerful and easier to employ.

Community data also shows the growing employ of shielded addresses. There are now more coins in the protected pool and more transactions go through it. Newer wallets that employ shielded mail by default have accelerated this trend. In compact, technology has matured and user experience has finally caught up.

Did you know? Analysts also hailed Zcash’s upcoming halving as a potential growth catalyst, further adding fuel to the narrative.

Risk, access and compliance information

Before you take action, remember a few practical facts:

• Regulating pressure: Privacy-enhancing assets are subject to increasing scrutiny under anti-money laundering (AML) regulations. The Financial Action Task Force (FATF) continues to push for full implementation of the travel rule, while the EU’s novel AML package tightens restrictions on “anonymity-enhancing” coins on regulated platforms, with phased enforcement until 2027.

• Exchange availability: Support varies by country and exchange and is subject to change at compact notice. There have already been regional deletions. For example, privacy coins have been withdrawn from some EU markets amid long-standing restrictions in jurisdictions such as Japan and South Korea.

• Variability and depth: When momentum increases, order books can lean and slippage deepens, especially outside business hours. Prices shown on aggregators may differ significantly from actual execution levels on specific exchanges.

• How to get exposure: Availability varies by jurisdiction. In the US, one indirect option is Grayscale Zcash Trust (ZCSH) on over-the-counter (OTC) markets. In parts of Europe, exposure is often through exchange listings or shelves of diversified exchange-traded products (ETPs), subject to eligibility and local rules.

• Correct employ of privacy features: Zcash privacy is optional, with screened and crystal clear modes, while CoinJoin in Dash must be enabled and configured manually. Improper employ may reveal metadata and reduce the effectiveness of privacy protection.

What does an 80% augment really tell us?

The 80% augment in privacy-focused assets reflects a combination of storytelling, technical aspects and leverage.

Zcash and Dash are not interchangeable. One relies on zero-knowledge proofs built into the protocol, while the other offers a mix of opt-in options along with speedy payments. However, both tend to benefit as the market shifts toward greater demand for privacy.

If you are exploring this trade, start with the mechanics, liquidity on your preferred platforms and the regulations in your jurisdiction, especially as EU restrictions tighten through 2027. Always assess your risk tolerance and seek professional financial or legal advice before making investment decisions in privacy assets.