Over the last week, the United States and president Joe Biden’s administration tightened sanctions against Russia a great deal. U.S. officials banned Russian energy imports as well as a variety of other imported goods and issued a string of financial sanctions. Last week saw the value of the two most privacy-centric crypto assets, monero and Zcash, increase significantly in the context of restricted global economies.
The Top 2 Privacy Coins Continue to Rise Despite Russia’s Sanctions
As economic sanctions continue to restrict the world’s trade further, privacy coins may be reaping the benefit from a tighter financial world. Monero (XMR), and Zcash (ZEC) were the two most privacy-focused cryptocurrency. Their value jumped by 20% between March 8th and 9. Crypto community grows quickly took noticeThe action is and discussedThe subject is also discussed on social media. XMR soared by more than 20% that day. ZEC saw a 26% increase in its value, while other privacy-focused cryptocurrency assets such as SCRT or ZEN soared higher.
It is my belief that privacy coins will get a pump in 2022. This Russia stuff will push it even further. In uncertain times, a coin with private value will prove to be extremely valuable.
— Kamal (@eth_kamal) March 12, 2022
The market capitalization for all privacy coins is now at 1.4%-10 billion. This was five days after the initial pump. Seven-day statistics five days after XMR’s and ZEC’s initial pump last week shows both coins still hold double-digit weekly gains. Weekly metrics show that Monero has risen 11.1% while ZEC is up 29.7%. XMR, ZEC lead in market valuations out of $10 billion worth of privacy coins.
If Russia purchases privacy coins but not bitcoin, what happens?
— im rotatingggg💎 (@TheRotatooor) March 8, 2022
Monero has a $3.3 billion market cap and zcash has a $1.8 billion capitalization on Sunday afternoon (EST). Year-to-date, however, XMR is down 17.2% since this time last year and it’s $3.3 billion represents only 0.18% of the entire $1.8 trillion crypto economy. ZEC on the other hand is up during the last 12 months 4.4% but its market valuation equates to 0.10% of the entire crypto economy’s value.
Bureaucrats and regulators are discussing how to introduce regulatory measures against crypto assets being used to bypass sanctions. Coinbase reported that it blocked more than 25,000 Russian addresses. This week Chainalysis, a blockchain surveillance company launched a screening program to block sanction evasion.
How do privacy coins fare after tightening financial sanctions? Please comment below to let us know your thoughts on this topic.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.