Privacy coins are facing sharp losses as broader crypto markets show signs of weakness. Major privacy-focused tokens such as Zcash, Dash, and Monero have seen steep declines within the last 24 hours.
- •Zcash saw a 25% drop in 24 hours, leading privacy coin losses.
- •93 out of 104 privacy tokens are currently trading in the red.
- •Analysts cite risk-off sentiment as investors pull back from crypto.
Zcash and Dash Lead Losses in Privacy Segment
Privacy-focused cryptocurrencies saw steep 24-hour declines, led by Zcash (ZEC) which fell 25%. Dash (DASH) followed with a 15% loss. Canton Network (CC) dropped by 8%, while Monero (XMR) and Beldex (BDX) recorded smaller losses of 4% and 3%, respectively.
These figures reflect a strong downward trend in the privacy coin sector. CryptoRank.io data shows that 93 out of 104 tracked privacy-focused coins are now in the red.
The losses come amid a broader downturn in the digital asset market, which has seen decreased trading activity and weakened sentiment.
The latest price drops are notable given the relatively stable performance of some privacy coins in the past months. However, current conditions suggest investors are moving away from high-volatility and lower-liquidity assets.
Analysts Respond to Market Shift
Market analysts say the decline in Privacy coins is part of a broader pullback from riskier digital assets. Many investors are reducing exposure to niche crypto categories during periods of uncertainty.
“Privacy coins are often among the first to drop when sentiment weakens,” said one analyst familiar with the sector. They noted that tokens with smaller market caps tend to face sharper price moves during broader corrections.
Privacy coins also face regulatory challenges, which can add pressure during negative market cycles. Despite earlier interest, many platforms have limited exposure to privacy tokens due to compliance concerns. This can make recoveries slower compared to more widely adopted assets like Bitcoin and Ether.