Privacy tokens are getting repriced a lot faster than the underlying usage. Over the past 90 days: > $ZEC: +140% > $XMR: +67% > @Zcash shielded holdings: +13% > Shielded supply: 26.04% → 29.15% Pretty significant divergence. $ZEC has rallied more than 10x the percentage growth in its shielded holdings, although the two metrics aren’t directly comparable. Doesn’t mean the rally is unjustified. Just means the market is pricing in considerably more than what’s currently visible in the adoption data. There are two distinctions being overlooked here. 1. Shielded holdings aren’t the same as private transactions. You can move $ZEC into a shielded pool and leave it there indefinitely. The balance increases, but recurring payment activity doesn’t. Dollar-denominated balances can be even more misleading. If $ZEC doubles while the number of coins held privately stays constant, the reported USD value doubles without additional deposits. @Monero has a different measurement problem. $XMR hides transaction amounts and counterparties by default, so observing more transactions doesn’t necessarily establish how many new users are participating. 2. Privacy adoption doesn’t always translate into native-token demand. Starknet introduces another variable because its privacy infrastructure can support assets beyond $STRK. Someone using confidential stablecoin transfers doesn’t necessarily need substantial exposure to the native token. This is where the investment thesis gets complicated. The market could be pricing in genuine growth in privacy demand, anticipating future adoption, or simply responding to momentum and positioning. All three can happen simultaneously. And the $ZEC data does show more supply moving into shielded holdings, so there’s measurable growth underneath the rally. But 144% price appreciation against 13% growth in shielded holdings leaves a substantial gap between the token’s performance and that particular adoption metric. That gap can narrow through stronger usage, a price correction, or some combination of both. My Take: Wouldn’t short privacy simply because prices have outrun adoption metrics. Momentum can remain strong even when fundamentals lag. But I wouldn’t confuse a vertical price chart with proof of mass adoption either. The trade can work long before the investment thesis is proven. Knowing which one you’re buying is the important part.
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