by Coinstrooper Crypto Articles
Quick Take
  • The renewed interest comes amid ongoing debates over stablecoin rewards in the U.S.
  • market structure bill and escalating trade tensions, creating conditions where some market participants anticipate continued volatility.
  • Investors are increasingly seeking assets that can decouple from broader market weakness and show resilience during periods of macro stress.
  • Youssef pointed to tightening KYC and AML requirements worldwide as key catalysts pushing users toward protocol-embedded financial privacy.

What Happened

Speaking with Cryptonews, Ray Youssef, CEO of crypto app NoOnes, explained that the strength in assets like Monero, Dash, and DUSK reflects investors seeking to preserve capital without fully exiting crypto positions.

“Privacy coins’ outperformance during a broad market pullback is an indicator of selective risk-taking by investors who prefer not to fully de-risk or exit their positions in the crypto markets,” Youssef said, adding that while stablecoins traditionally served as the preferred safe haven during volatility, “privacy coins now offer a compelling alternative by aligning with the trend toward censorship resistance.“

Investors are increasingly seeking assets that can decouple from broader market weakness and show resilience during periods of macro stress.

“This raises the question of complete centralized control over assets previously considered immutable and decentralized,” Youssef noted, arguing that “privacy coins are taking on a new role, becoming a form of financial independence from corporate and regulatory structures.“

Dubai’s International Financial Centre’s prohibition on privacy tokens trading due to AML and sanctions risks announced last week has failed to interrupt the bullish trend.

“Remarkably, even the ban on privacy coin trading announced last week by Dubai authorities hasn’t interrupted their bullish trend,” Youssef observed.

Market Context

Privacy-focused cryptocurrencies surged over the past week, even as Bitcoin and most altcoins tumbled, with the sector climbing 13% while nearly $1 billion in positions were liquidated across broader markets following Trump’s tariff threat on Europe over Greenland.

The rally has pushed privacy tokens, including Monero, Dash, and DUSK, into the spotlight amid widespread crypto weakness, indicating what analysts describe as selective capital rotation rather than traditional risk-off behavior.

DUSK posted the steepest gains, surging 110.5% daily and over 354% weekly, bringing the privacy coin category’s market capitalization to $21.7 billion with $2.4 billion in trading volume.

The renewed interest comes amid ongoing debates over stablecoin rewards in the U.S. market structure bill and escalating trade tensions, creating conditions where some market participants anticipate continued volatility.

Privacy coins have outperformed large-cap assets across several recent market downturns, establishing divergence patterns that could cement their role in strategic portfolios.

With DUSK posting over 540% growth in 30 days, market participants are watching whether it can sustain momentum and join established privacy leaders.

Why It Matters

“Privacy is once again recognized as fundamental to decentralization,” Youssef said, noting that “the core use case and technology of privacy coins remain relevant, especially amid ongoing concerns about peer risk, sovereign surveillance, and the future of digital finance.“

“If privacy coins’ strength endures, we could see XMR at $650, Dash at $90, and DUSK at $0.28 in the coming days,” Youssef projected.

Details

Over the past 24 hours, Bitcoin dropped nearly 3%, while most altcoins fell between 3% and 10%; privacy coins, however, moved in the opposite direction, according to CoinGecko data.

Dash traded at $81.61, up 1.9% on the day and 119% over the week, while Monero, which hit a new all-time high last Thursday, traded around $644, gaining 8.9% in 24 hours.

Structural Demand Replaces Stablecoins as Safe Haven

Youssef pointed to tightening KYC and AML requirements worldwide as key catalysts pushing users toward protocol-embedded financial privacy.

The mass freezing of stablecoins has accelerated this shift, most notably Tether’s freezing of over $182 million in USDT across five addresses on January 11.

From 2023 to early 2026, Tether froze over 7,000 wallets totaling approximately $3.3 billion USDT, primarily citing illegal activity.

Despite these regulatory headwinds, the sector has continued to post gains.

Technical Momentum Points to Further Upside

Pavel Nikienkov, founder of Zano, also emphasized last week that privacy represents more than a passing trend.

“Privacy isn’t a passing trend,” Nikienkov stated, pointing to a16z’s 2025 State of Crypto report, which highlights sharp rises in Google search interest for privacy-related terms.