Data indicates that the market liquidity of Monero and Zcash has reached an unprecedented minimum.
Privacy tokens are facing difficulties in meeting the listing criteria of cryptocurrency exchanges due to regulatory pressure, resulting in a significant decrease in liquidity, according to data from Kaiko. Monero (XMR), Zcash (ZEC), and DASH have all reached all-time lows in liquidity as these assets are being removed from exchange listings. Last week, privacy-focused tokens had only $5 million in liquidity after several trading pairs were removed from OKX. Major platforms have been delisting privacy tokens due to regulatory pressure, which has further worsened the decline in liquidity during the crypto bear market. Both XMR and ZEC are currently at a high risk of being delisted on Binance because of their low liquidity. ZEC has been the most delisted privacy token in the past two years. As a result, the market has become more fragmented, with XMR dominating on large exchanges, while ZEC and DASH are mostly traded on smaller unregulated venues. Despite the delistings, there are differing opinions within the crypto industry. Ethereum co-founder Vitalik Buterin has emphasized the importance of users being able to transact directly on the Ethereum blockchain without relying on centralized providers.