There has been a quiet shift happening in the privacy coin sector recently.

The most direct indicator is the price. On January 19th, DUSK surged by 40%, and this is not an isolated market movement but a continuation of its previous strong trend — since the beginning of the year, it has already increased by more than four times. The underlying logic is quite clear: large funds are shifting from traditional privacy coins like Monero and Dash to smaller market cap projects like DUSK. Trading volume and capital flow data both confirm this rotation.

Why is this happening? The core is not that DUSK is just another privacy chain, but that it is doing something interesting — bridging privacy and compliance. This is truly scarce.

The market is affirming a new approach: privacy is no longer seen as a means to evade regulation, but rather as an intrinsic capability of a compliant system. In other words, DUSK allows data to protect sensitive information while still being auditable, meeting regulatory requirements and legal constraints. For financial institutions, this is exactly what they need.

The story of traditional privacy coins has been told for many years. Now, the market wants to hear how privacy can be integrated with real-world finance. DUSK clearly captures this opportunity. Based on data of trading activity and capital inflows and outflows, this rotation is not speculation but investors seeking a combination of high upside potential and compliance narrative.