Dash Rises 29% as Traders Hunt for Next Privacy Coin After Zcash Rally

Dash is benefiting handsomely from the sudden surge in popularity of privacy coins. During the rally, DASH rose by as much as 29% and is now trading at around $67.80. Over the past seven days, gains have expanded to more than 74%. The move comes shortly after Zcash broke through $1.000 and reached a market value of roughly $17 billion. With a market capitalisation below $1 billion, Dash is a much smaller player, which suggests traders are betting on a catch-up rally.

Zcash rally lifts Dash higher

Privacy coins are currently among the stronger parts of the cryptocurrency market. Zcash in particular stands out. ZEC has broken through $1.000, reaching its highest level in around eight years, while its market value heads towards $17 billion.

The Zcash rally has also resulted in around $34 million in liquidated short positions. The move follows the arrival of a US exchange-traded product tied to Zcash.

With ZEC rising so sharply, some attention is shifting to other privacy coins. Dash is a logical candidate for speculators. The coin has a much smaller market capitalisation and, in theory, therefore offers more room for large percentage moves when fresh capital flows in.

DASH climbed around 29% during the rally. Based on the latest price data, the coin now stands at $67.80, which is 26.81% higher than 24 hours ago and a full 74.40% higher than a week ago.

Dash also has its own developments

The price move is not only about speculation around Zcash. Dash is also working on new privacy features itself.

Last month, the project introduced shielded transactions on Evolution, using Orchard technology from Zcash. This allows users to conduct transactions in which sensitive information is better shielded. According to the information provided, settlement takes around one second.

In addition, the project is working on Dash to Anything. The idea is that a user sends DASH, while the recipient can decide in which supported asset the payment arrives. Dash is using this to try to make the coin more practical for payments, without both parties necessarily having to use the same cryptocurrency.

DASH remains much smaller than Zcash

The valuation gap between the two projects remains wide. With around 13 million DASH in circulation, Dash has a market capitalisation of roughly $870 million. Daily trading volume, meanwhile, stands above $591 million.

That trading volume is strikingly high relative to the total market value and shows how much speculative activity is currently building around DASH.

The comparison with Zcash can fuel the rally further, but it is no guarantee that Dash will follow the same route. After a rise of more than 74% in seven days, a great deal of optimism has already been priced in over a very short period.

For now, at least, Dash is enjoying the full benefit of renewed interest in privacy coins. The combination of new technology and traders searching for smaller alternatives after the Zcash explosion has suddenly put DASH firmly back in the spotlight.