Privacy-focused cryptocurrencies are gaining popularity.

Privacy-focused altcoins such as Monero, Zcash, and Secret were among the fastest-growing in the second decade of March, as the cryptocurrency market bounced off Tuesday’s support levels, increasing its total market cap by more than 6%. These days, anonymous tokens have been the most productive in recent months.

XMR (Monero) is up more than 25% over 09.09.2022, rising to $277 on Binance before falling to $196. ZEC (Zcash) and SCRT (Secret) are up 16% over the same period, hitting their highest levels since late January.

The price chart analysis shows that XMR may fall to the $180 support level, while ZEC and SCRT may drop from $137 and $5 to $129 and $4.20, respectively.

Some analysts say that masking the wallet address and user identity may increase investor demand for privacy coins.

“Due to the quality of identity protection and transaction details, many cryptocurrency users still believe that confidential tokens help consolidate the basic principles of blockchain transactions,” Alexander Mamasidikov, co-founder of MinePlex crypto bank, wrote in an email to CoinDesk.

In his opinion, these tokens have inherent qualities and use cases, which, according to many investors, will also contribute to increasing demand for them across the board.

Monero and Zcash, unlike Bitcoin or Ethereum, use a cryptographic process to ensure that transactions cannot be linked to wallet owners and that they cannot track them.

This arrangement is helpful for some users in the current situation: as reported last Sunday, exchanges such as Coinbase blocked more than 25,000 crypto addresses associated with illegal activity.

Crypto exchanges have been forced to monitor cryptocurrency activity related to Russia, especially as the country has faced sanctions from Western countries following its invasion of Ukraine. The sanctions include blocking the financing of Russian enterprises and organizations and a ban on purchasing Russian goods and products.

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