Privacy coins surge…Monero hits a record high; Dash spikes in the short term

Privacy coins have surged since the start of the year, emerging as a new bullish sector in the crypto market.

According to Decrypt on the 13th (local time), Monero (XMR) has risen 54% over the past seven days, breaking above $667 to set a new all-time high. Dash (DASH) jumped about 39% in a single day, posting its biggest one-day gain since October 2025. The broader privacy-coin sector is being seen as showing standout strength versus other altcoins.

The rally has been attributed to the European Union’s (EU) crypto tax reporting rules under DAC8. With crypto service providers set to be required to collect users’ tax information starting January 1, 2026, analysts say investor demand for privacy as a core feature has resurfaced.

The broader tightening of regulation is also cited as a factor amplifying price volatility. The Dubai Financial Services Authority recently imposed a blanket ban on trading and promoting privacy tokens and using related derivatives within the Dubai International Financial Centre. Market participants say the move instead highlighted the scarcity of privacy coins, stoking short-term buying interest.

Internal turmoil surrounding Zcash (ZEC) also acted as a catalyst for fund flows. After key personnel at the Zcash development organization resigned in early January, ZEC has fallen about 50% from recent highs. Funds within the privacy segment are said to have rotated out of ZEC into XMR and DASH.

By token, Dash is viewed as having spiked on the impact of a short squeeze in the derivatives market. XMR, meanwhile, is interpreted as having entered a price-discovery phase after breaking above a long-term resistance line. Still, signs of near-term overheating are emerging at the same time, prompting caution about the potential for heightened volatility.