Confidentiality that provides anonymity by hiding the flow of money within blockchain networks altcoins It has been in an uptrend for the last 30 days.
Some cryptocurrency Analysts think the source of this trend is geopolitical tensions.
Mati Greenspan, founder of cryptocurrency analysis firm Quantum Economics, said that the upward price speculation may have occurred due to financial sanctions. Thanks to privacy tokens, it becomes difficult to identify who the senders and receivers are. This attracts users who do not want their financial activities to be monitored or viewed.
“Bitcoin Doesn’t Provide Enough Privacy”
Greenspan said in his statement on the subject:
“We can assume that many are turning to cryptocurrencies because of the sanctions imposed on Russian citizens. However, because Bitcoin does not provide enough anonymity for some needs, Russians may be buying privacy coins.”
Altcoins Like Monero, MASK and Decred on the Rise
The world’s largest privacy token by market capitalization Monero (XMR) It has gained 35% in the last 30 days. in the same time period in bitcoin The increase was limited to 6%.
Lux Thiagarajah, head of trade for BCB Group, said in a statement that interest in XMR increased after Russia’s invasion of Ukraine.
Jeff Dorman, chief investment officer at Arca company, said in a statement:
“People are starting to realize that their money is no longer their own money when held by a particular financial institution. This looks bullish for stablecoins, Bitcoin and privacy tokens.”
Enables users to use cryptocurrencies and decentralized finance (DeFi) applications of Mask Network altcoin MASK It is also among the cryptocurrencies that have been on the rise in recent days. Another privacy token Decred (DCR) It has a market capitalization of $759 million and has gained 9% in the last 30 days.
Charles Storry, head of growth for crypto index platform Phuture, said in a statement that the rise in the price of privacy-focused protocols altcoins may have been due to the migration from the DeFi sector to privacy tokens.
However, there are also those who experience losses among privacy tokens. The world’s second largest privacy token by market capitalization. Zcash (ZEC) It has lost 5% in the last 30 days.
*Not investment advice.