Privacy Coins Slip Amid Broader Crypto Market Recovery
Privacy-focused cryptocurrencies are underperforming as Bitcoin rallies above $90,000, prompting investors to rotate capital toward speculative assets, especially meme coins. The privacy coin sector, now valued above $18.8 billion, dropped 2.3% in the past day, with leading tokens like Midnight, Monero, and Canton Network seeing declines of 6.4%, 1.5%, and 3.3% respectively. This contrasts with double-digit gains in meme coins, reflecting a shift in market psychology. Analysts attribute the trend to short-term capital rotation rather than fundamental weakness; traders are moving from defensive holdings to sectors offering greater momentum and liquidity. The recent decline follows a period of outperformance for privacy coins and is viewed as a correction, not a strategic shift away from the sector. Analysts and developers maintain confidence in the long-term value of privacy-focused assets, noting sustained user demand for privacy and their tendency to perform well during periods of regulatory uncertainty or broader risk aversion. The current environment signals a market moving from safety to speculation, with overall sentiment remaining cautious.
