Privacy Coin Continues to Receive Inflows, HYPE Market Cap Once Surpasses Dogecoin

BlockBeats News, May 26th. The privacy coin sector led the decline, erasing most of the recent gains in the cryptocurrency market. According to HTX data, ZEC fell 5.2% to $619 at one point, marking the largest decline among the top 20 coins by market capitalization, but still up 8.2% over the past 7 days.

Zcash has been one of the strongest performing assets in the cryptocurrency market in recent weeks. Due to Multicoin Capital disclosing its holdings earlier this month, and the overall increase in interest in privacy coins, ZEC has attracted institutional attention. Analysts believe that the 5% pullback after such a rally is more of a profit-taking move rather than fresh selling pressure, as structural buyers of privacy coins have been accumulating throughout the uptrend rather than distributing.

Hyperliquid's HYPE token briefly surpassed Dogecoin in market capitalization during the Asian session before retracing. HYPE fell 4% to $59, while Dogecoin (DOGE) fell 0.8% to $0.1009. Fueled by last week's launch of perpetual contracts for SpaceX before its listing on Hyperliquid, HYPE is still up 23.6% over the past 7 days.

The macro backdrop set a cautious tone in the market. The US Central Command confirmed strikes on Iran's missile launching sites and ships attempting to mine the Strait of Hormuz, calling it a defensive action. Brent crude oil rose nearly 2% to $98 per barrel, rebounding from a 7% plunge on Monday (when London and New York markets were closed for a holiday). The US dollar strengthened against all G10 currencies, gold fell 0.6% to $1,545, and S&P 500 futures maintained a 0.6% gain after the US market holiday on Monday.