DASH is the third-largest privacy coin by market capitalization, following XMR and ZEC. Currently, it faces several warning signals, but many holders are overlooking them. In the cryptocurrency community, positive discussions about privacy coins are predominant, which may obscure these warning signals.
These signals can serve as important warnings. They may repeat past patterns, potentially leading to losses for DASH holders.
DASH dormant coins, distribution phase signal
Firstly, DASH coins that had not moved for a long time were reactivated on a large scale in November 2025. This change is interpreted as a signal of behavioral change among holders. When a large number of coins that have been held for a long time begin to move, it is usually when early investors and long-term holders start to distribute coins near the price peak.
The Coin Days Destroyed (CDD) metric tracks this behavior. This metric is calculated by multiplying the quantity of coins by the period of inactivity. If this figure spikes, it indicates that old holdings are being reintroduced to the market on a large scale.
In the past, major spikes in CDD have occurred near key price peaks in the cryptocurrency market.
"DASH - Coins that had not moved for a long time were reactivated on a large scale in November. Currently, activity is declining. Historically, significant movements of long-dormant supply often occur near the peak of a cycle." - Joao Werdson
Just because reactivation activity continues to decline does not mean that risks are reduced. The distribution phase can last for weeks, or even months. During this period, large holders may quietly liquidate positions. Over time, this can exert significant downward pressure on prices.
DASH whale concentration record
The second risk is that the supply concentration is increasing. The top 100 DASH wallets hold over 41% of the total supply. This is the highest ratio in 10 years, according to Bitinfocharts data.
According to the graph, this ratio has steadily increased from 15.5% when DASH reached its all-time high in December 2017.
High supply concentration can provide stability if large investors maintain trust. Major holders can absorb market volatility and maintain positions over the long term.
However, this concentration poses serious risks. If a small number of wallets control a large portion of the supply, their actions can significantly impact the market. If whales sell simultaneously or asynchronously, it can overwhelm the order book and cause a sharp price drop. This impact can also spread to the derivatives market.
DASH open interest hits an all-time high… liquidation risk increases
The third risk is that open interest (OI) for DASH in the derivatives market is surging.
Currently, DASH is trading at around $150, which is half of the price in November. Nevertheless, open interest has surpassed $180 million. This is double compared to November and the highest record in DASH's history.
This trend indicates an unprecedented level of leverage exposure among DASH traders. In such an environment, there is a high likelihood of large-scale forced liquidations. Such events can impact the spot market as well.
Additionally, recent reports from BeInCrypto indicate a shift of capital towards smaller privacy coins. This phenomenon can be interpreted as a signal that investor expectations for large assets are diminishing. It can also become an obstacle to maintaining DASH's ongoing upward momentum.