Investors Rotate Into DUSK After Missing XMR and DASH Rallies, but Data Raises Warnings
Capital from traders eager about privateness cash reveals indicators of rotating towards lower-market-cap altcoins. This shift happens as many imagine billion-dollar tasks resembling XMR and DASH have grow to be saturated. One candidate drawing consideration is Dusk (DUSK).
What benefits make DUSK enticing to traders? What do on-chain knowledge alerts warn about? The following article explores these questions intimately.
Dusk (DUSK) Defies the Market, Rallies More Than 4x in January
On January 19, whereas Bitcoin fell practically 3% to under $93,000 and many altcoins dropped 5–10%, DUSK surged 40% to a high above $0.22. This marked its highest stage since January 2025.
DUSK has risen greater than fourfold because the starting of the yr. Arkham knowledge on DUSK buying and selling quantity throughout centralized exchanges (CEXs) reveals that quantity exceeded $1.4 billion over the previous week. This was the very best stage prior to now yr.
At the time of writing, the altcoin ranked within the Top 4 by 24-hour buying and selling quantity, trailing solely ZEC, XMR, and DASH, based on CoinGecko. The sharp spike in buying and selling quantity means that DUSK is attracting sturdy retail curiosity.
Two Key Factors Driving DUSK’s Price Surge
The first issue lies in DUSK’s intrinsic worth. Its key power comes from superior encryption expertise. DUSK integrates zero-knowledge proofs (ZK proofs) and zk-SNARKs to hide transaction particulars whereas nonetheless permitting regulators to entry crucial knowledge.
While altcoins resembling XMR may face legal challenges because of full anonymity, even towards regulators, DUSK takes a special method. This path doesn’t essentially fulfill privateness maximalists, but it goals for steadiness.
Investor Paxton explained that companies require privateness, whereas regulators require transparency. Dusk positions itself within the center.
“Private by default, accountable when required. DUSK shielded transfers conceal sender and quantity from the general public, whereas the receiver can nonetheless confirm—and cryptographically show—who paid them. That lacking piece makes privateness on Dusk far more travel-rule-friendly and compliant.” — Hein Dauven, CTO of the Dusk Foundation, said.
The second issue is extra exterior. Investors more and more imagine that large-cap privacy coins offer limited upside after sturdy rallies. As a consequence, capital flows toward smaller-cap privacy projects. DUSK’s present market capitalization stands at simply over $100 million.
On-Chain Data Signals Potential Risks
Despite the sturdy rally, the worth surge might face dangers after a fourfold enhance. On-chain trade circulate knowledge from Arkham gives a warning sign.
This knowledge displays the quantity of DUSK flowing into and out of exchanges. On January 16–17, trade inflows spiked to greater than 6 million DUSK per day. This marked the very best stage prior to now 30 days. The knowledge means that early traders could also be taking income after the latest rally.
In addition, capital rotating into lower-market-cap altcoins inside the similar narrative usually alerts {that a} cycle is nearing its finish. Combined with the return of fear sentiment within the third week of January, this pattern might enhance dangers for traders chasing DUSK at present ranges.
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