Privacy-focused cryptocurrency Monero climbed to an all-time high above $687 on Tuesday, driven by investor appetite for confidential transactions amid tightening digital asset regulations. The rally marks a 14% gain in 24 hours.
The token posted 45% in weekly gains, pushing its market capitalization to the 11th-largest position among cryptocurrencies. Privacy coin sector capitalization increased 3.5% while trading volumes jumped 32%, according to market data.
Privacy tokens outperformed the broader cryptocurrency market throughout the three months following October's $19 billion market crash. Regulatory developments appear to be the primary catalyst behind shifting investor preferences.
Narek Gevorgyan from CoinStats attributes the demand surge to escalating surveillance of digital economies and government oversight of crypto transactions. Investors seeking financial confidentiality are turning to privacy coins as Know Your Customer and Anti-Money Laundering frameworks expand globally