The performance of the crypto market in Q4 2025 is indeed not optimistic—mainstream coins lack momentum, new projects frequently break their peg, and many investors are complaining about being trapped. However, interestingly, amidst this downturn, the privacy coin sector has carved out a blood path. A recent analysis report from a leading research institution also confirms this phenomenon. As a long-term market observer, I believe it’s necessary to clarify the logic behind this—this is not accidental, but traceable.
**Why do privacy coins become more popular when the market is worse?**
There are two main reasons. The first is risk aversion driven by psychology. When market volatility increases and regulatory expectations are uncertain, capital fears "uncertainty" most strongly. The anonymous features of privacy coins can alleviate this anxiety—holding position information is not tracked, and transaction records are more concealed, which is very attractive to investors seeking risk hedging.
The second is valuation reshaping brought by technological breakthroughs. ZEC, as a flagship project in the privacy coin sector, achieved a major version upgrade in the third quarter of this year that cannot be ignored. The core upgrades include three aspects: optimization of zero-knowledge proof protocols is the highlight. The new protocol compresses verification time by nearly 40%, significantly improving transaction confirmation efficiency, which is equivalent to elevating the entire system’s operational speed to a new level; privacy protection mechanisms have also been strengthened, reducing resource consumption while maintaining anonymity; additionally, improvements in cross-chain compatibility have expanded ZEC’s application scenarios within multi-chain ecosystems.
These technological advances not only solve the long-standing performance bottlenecks of privacy coins but also redefine their position in the crypto market. When a bear market arrives, it is the best time for technology-driven projects to stand out.
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LiquidationWizard
· 7h ago
Bear market bottoming out privacy coins? To put it nicely, it's just fear of being audited. The 40% optimization figure for ZEC is hyped up quite a bit; how much it can actually rise, we'll see.
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NftBankruptcyClub
· 7h ago
Privacy coins taking off during a bear market? That's quite interesting. Those who are trapped might want to take a look at this track.
The recent optimization of ZEC sounds promising, but can it really sustain? It still depends on the subsequent application implementation.
I think there's some truth to the risk-avoidance mentality—when uncertain, people tend to hide in concealed places, which is human nature.
By the way, when will regulatory authorities come to crack down on privacy coins? Is the outlook really reliable?
Wait, ZEC's cross-chain compatibility has been upgraded? If that's true, it could definitely open up a new situation.
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MintMaster
· 7h ago
Ha, finally someone has explained this clearly. Privacy coins are indeed quite interesting this time.
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I also watched the technical iteration of ZEC, and the 40% reduction in verification time is no small feat.
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To be honest, the stricter the regulations, the more funds flock to privacy coins. That logic makes sense.
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The bear market is the real test of technology; the crypto circle is just like A-shares in this regard.
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I have a slightly different view on risk aversion psychology. It feels more like institutions are bottom-fishing and making foundational allocations.
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This is a common topic. Every bear market has one or two sectors that break through against the trend; ZEC may not be the eternal answer.
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You might want to pay attention to cross-chain compatibility upgrades. Multi-chain ecosystems are truly the future trend.
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Wait, are privacy coins still okay to trade on Asian exchanges? I'm a bit worried about compliance issues.
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Technical breakthroughs are one thing; whether they can be implemented is another. Let's wait and see.
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I'm curious how long this wave of privacy coin price increases can last. It feels like the heat will only last a few months.
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RugpullAlertOfficer
· 7h ago
Are privacy coins eating the meat during the bear market? Honestly, it's kind of interesting, much more reliable than projects that keep shouting about air all day long.
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I’ve looked at ZEC’s recent upgrade. A 40% efficiency boost sounds good, but I’m not sure if the actual user experience is really that impressive.
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The risk-averse mentality really hits the point. The more chaotic the market, the more investors want to hide away.
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Wait, while privacy coins are gaining popularity, aren’t regulators also watching? Is this risk being underestimated?
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Instead of calling it a technological breakthrough, I think it’s more about the market panic period’s capital refuge effect.
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It’s good that ZEC can withstand this round of the bear market, but projects that truly stand out still depend on user base. Having technology alone isn’t enough.
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The logic makes sense, but I still want to see how long this enthusiasm can last in three months.
The performance of the crypto market in Q4 2025 is indeed not optimistic—mainstream coins lack momentum, new projects frequently break their peg, and many investors are complaining about being trapped. However, interestingly, amidst this downturn, the privacy coin sector has carved out a blood path. A recent analysis report from a leading research institution also confirms this phenomenon. As a long-term market observer, I believe it’s necessary to clarify the logic behind this—this is not accidental, but traceable.
**Why do privacy coins become more popular when the market is worse?**
There are two main reasons. The first is risk aversion driven by psychology. When market volatility increases and regulatory expectations are uncertain, capital fears "uncertainty" most strongly. The anonymous features of privacy coins can alleviate this anxiety—holding position information is not tracked, and transaction records are more concealed, which is very attractive to investors seeking risk hedging.
The second is valuation reshaping brought by technological breakthroughs. ZEC, as a flagship project in the privacy coin sector, achieved a major version upgrade in the third quarter of this year that cannot be ignored. The core upgrades include three aspects: optimization of zero-knowledge proof protocols is the highlight. The new protocol compresses verification time by nearly 40%, significantly improving transaction confirmation efficiency, which is equivalent to elevating the entire system’s operational speed to a new level; privacy protection mechanisms have also been strengthened, reducing resource consumption while maintaining anonymity; additionally, improvements in cross-chain compatibility have expanded ZEC’s application scenarios within multi-chain ecosystems.
These technological advances not only solve the long-standing performance bottlenecks of privacy coins but also redefine their position in the crypto market. When a bear market arrives, it is the best time for technology-driven projects to stand out.