Privacy Coins Fall Through The Ranks As Market Caps Decline
Bitcoin.com has reported that the market caps for many privacy coins have decreased significantly over the course of 2018. Although privacy coins are still among the leading cryptocurrencies, they no longer occupy a single position in the top ten list.
Bitcoin makes its transactions viewable on a public blockchain, and those transactions could (in theory) be connected to deduce an address holder’s identity. The desire to find a solution to this problem has led to the creation of privacy coins like Monero, DASH, and Zcash, which gained popularity in April 2017.
Each coin was once prominent, but now, the market cap of each is falling. There are various possible reasons for the decline of each: Monero‘s recent conflict over ASIC mining has led to four different forks and contributed to the coin losing 64% of its market cap. DASH is facing accusations of instamining and has lost 84% of its market cap. ZCash has a rapidly fluctuating price, but has lost 56% to 67% of its market cap according to Bitcoin.com.
It is worth noting that Bitcoin.com is measuring the decline starting from the high market caps that many coins had last December. Immediately after this, there was an overall market crash, which means that the privacy cryptos in question are not the only coins suffering. Bitcoin itself has had its market cap fall by approximately 40% since December, meaning that, relatively speaking, the numbers are not as dramatic as they seem.
Additionally, the fact that coins are falling through the ranks is not solely due to falling market caps: the ascension of new coins is also a factor. The past year has seen coins successfully market themselves on other non-privacy features. EOS popularized the designated proof of stake model, which propelled it to the top 10 in January. More recently, Tether surged as a stability coin with a market value tied to the US dollar, and entered the top 10 in July.
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