Zcash and Dash come back into focus

Key points to remember:

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

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

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

• Despite the hype, privacy coins face stricter global anti-money laundering rules and limited exchange access.

Privacy-focused cryptocurrencies are back in the spotlight. In early November 2025, the sector’s combined market capitalization jumped nearly 80%, briefly surpassing the $24 billion to $25 billion range.

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

This move reflects a rotation of textbooks. Prolonged downtrends finally gave way, short positions were forced to cover, and anticipation around Zcash’s upcoming halving provided traders with a new catalyst in 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 by using advanced cryptography or mixing techniques that reduce the possibility of addresses being linked.

This stands in stark contrast to Bitcoin-style public ledgers, where every transaction is visible and analytics companies can often reconstruct user identities over time.

Zcash (ZEC)

Zcash supports two modes: transparent transfers (visible on-chain like Bitcoin) and protected transfers that keep transaction details confidential. Its privacy features are powered by zero-knowledge proofs, the origin of zk-SNARKs, which allow the network to verify transactions without revealing their content.

Since Network Upgrade 5 (NU5), Zcash’s Orchard protected pool has been using the Halo 2 test system: a zero-knowledge protocol that eliminated the previous “trust setup” ceremony and streamlined private payments. Privacy remains optional, allowing users to choose between transparent and protected addresses as needed.

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

Hyphen (DASH)

Dash is designed for fast, low-cost digital payments with optional privacy. Its wallet includes CoinJoin, a non-custodial mixing mechanism that combines the inputs and outputs of multiple users, making individual transaction histories more difficult to trace.

CoinJoin works via masternodes and must be activated manually in the Dash Core wallet. Standard transactions remain transparent by default. Users can select the number of mixing rounds to run – additional rounds improve plausible deniability but also slightly increase processing time and network fees.

Why this gathering now?

There are four key factors to note:

1. A step towards confidentiality: As blockchain’s demanding compliance on-ramps and analytics tighten, some traders are turning to assets with stronger privacy features. The recent rally suggests the speech is resonating again.

2. Technical points: ZEC broke out of a multi-year downtrend and gained momentum once resistance was broken, lifting its peers as trend-following screens lit up.

3. Comments on derivative products: Open interest and volumes spiked, shorts were forced to cover, and funding was reversed. This type of fuel can turn a sharp move into a sustained rise.

4. Attention and chatter: Bold calls from leading traders and headlines about multi-year highs have drawn new interest and capital into the trade, further bolstering sentiment.

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

Dash: How it works, where it is located

Beyond CoinJoin, Dash emphasizes the speed and finality of transactions. InstantSend uses masternode quorums to lock transaction entries, enabling payment confirmation in seconds. ChainLocks secures the most recent lock against reorganizations, giving traders greater confidence without waiting for multiple confirmations.

The result is a form of “digital currency” with consumer-facing privacy tools rather than default anonymity. What was once called “PrivateSend” is simply the same CoinJoin technique. This balance between usability and privacy remains Dash’s main appeal.

Zcash: what has changed under the hood

The biggest change to Zcash came with the NU5/Halo upgrade. By removing trustworthy configuration and introducing unified addresses that automatically route funds to the appropriate pool, the project has made private transactions both stronger and easier to use.

Community data also shows growing adoption of protected addresses. More coins are now held in the protected pool and a larger share of transactions pass through it. New wallets that use secure sending by default have accelerated this trend. In short, the technology has matured and the user experience has finally caught up.

Did you know? Analysts have also pointed to the upcoming Zcash halving as a potential growth catalyst, adding fuel to the narrative.

Risk, Access and Compliance Notes

Before you get started, keep a few practical realities in mind:

• Regulatory pressure: Privacy-enhancing assets are facing 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 European Union’s new AML package strengthens restrictions on “anonymity-enhancing” coins on regulated platforms, with phased application until 2027.

• Exchange availability: Support varies by country and exchange and is subject to change without notice. Regional delistings have already taken place. For example, privacy tokens have been removed from some EU markets, alongside long-standing restrictions in jurisdictions like Japan and South Korea.

• Volatility and depth: When momentum picks up, order books can thin and slippage increases, particularly outside of business hours. Prices displayed on aggregators may differ significantly from actual execution levels on specific exchanges.

• How to make yourself known: Availability depends on jurisdiction. In the United States, an indirect option is the Grayscale Zcash Trust (ZCSH) in the over-the-counter (OTC) markets. In some regions of Europe, exposure is often through stock exchange listings or diversified exchange traded product (ETP) shelves, subject to eligibility and local policy.

• Use privacy features correctly: Zcash’s privacy is optional, with protected and transparent modes, while Dash’s CoinJoin must be manually enabled and configured. Improper use can expose metadata and reduce privacy effectiveness.

What the 80% Rally Really Tells Us

The 80% increase in privacy-focused assets reflects a mix of storytelling, technical and leverage.

Zcash and Dash are not interchangeable. One relies on zero-knowledge proofs built into the protocol, while the other offers opt-in mixing as well as fast payments. However, both tend to benefit from market shifts toward greater demand for privacy.

If you’re exploring this trade, start with the mechanics, liquidity on your favorite sites, and regulations in your jurisdiction, especially as EU restrictions tighten through 2027. Always evaluate your risk tolerance and seek professional financial or legal advice before making investment decisions in privacy-focused assets.