Privacy Coins: Are DASH and Zcash Poised for a New Bull Cycle?

Technical Momentum: Zcash's Surge vs. DASH's Earnings Woes

Zcash has captured headlines in 2025 with a 300% price surge, reaching approximately $422, driven by its adoption of zero-knowledge proofs (ZKPs) and optional transparency features, according to a Coinotag report. On-chain activity for Zcash has surged 150% quarter-over-quarter, signaling growing user engagement, per the same Coinotag report. This momentum is bolstered by the Electric Coin Company's Q4 roadmap, which prioritizes privacy enhancements and usability improvements, as noted in the Coinotag report.

In contrast, DoorDash (DASH) has faced a sharp correction following its Q3 2025 earnings report. Despite exceeding revenue expectations at $3.45 billion, the stock plummeted 16% after missing EPS forecasts and issuing a weak 2026 guidance, according to a TechCrunch report. The stock's 28.5% decline from its 52-week high of $281.74 underscores investor concerns about near-term profitability amid planned reinvestments in platform technology and global expansion, as noted in a Globe and Mail report.

Regulatory Risks: A Double-Edged Sword for Privacy Coins

Regulatory scrutiny remains a critical headwind for privacy coins. By early 2025, 97 countries had updated regulations targeting privacy-focused assets, a 34% increase from 2024, according to a Coinlaw report. Exchanges like Binance and Kraken have delisted privacy coins-including Zcash and Monero-amid compliance challenges, as noted in the Coinlaw report. The U.S. Treasury's proposed rule requiring reporting of private coin transactions over $500 further complicates adoption, per the Coinlaw report.

Zcash's optional transparency features, however, position it as a more compliance-friendly alternative to Monero, which is linked to 87% of illicit privacy coin transactions, according to the Coinlaw report. This differentiation could mitigate regulatory risks for Zcash, particularly as institutions seek privacy tools that align with evolving compliance frameworks.

Institutional Demand: A Glimmer of Hope for Privacy Coins

Despite regulatory hurdles, institutional interest in privacy coins has grown. Grayscale's October 2025 report notes a 248% surge in Zcash's value, with its Zcash Trust attracting significant institutional capital, as reported in a CryptoNews article. Institutions are leveraging Zcash's shielded pools for confidential transfers while retaining auditability when required, as reported in the CryptoNews article.

Carter Feldman of Psy Protocol highlights that institutional demand extends beyond Zcash itself to the broader privacy-preserving technologies it represents, according to the CryptoNews article. However, challenges persist, including compliance with the FATF Travel Rule and technical risks like transaction delays, as noted in the CryptoNews article.

Conclusion: A Mixed Outlook for Privacy Coins

Zcash's technical momentum and institutional adoption suggest it is better positioned to capitalize on a potential bull cycle compared to its peers. Its optional transparency and strategic roadmap address regulatory concerns while catering to institutional demand. DoorDash (DASH), meanwhile, represents a separate narrative-a tech stock grappling with earnings pressures unrelated to the privacy coin sector.

For privacy coins to thrive, balancing innovation with regulatory adaptability will remain paramount. Investors should monitor Zcash's progress in Q4 2025 and the evolving compliance landscape, as these factors could determine whether the sector enters a new era of legitimacy and growth.