The crypto market sees fresh impetus as investors turn toward assets stressing on-chain anonymity and regulatory robustness. Privacy tokens like Worldcoin (WLD) and Zcash (ZEC) surged double-digits on May 23, 2025, while Hyperliquid’s native token HYPE soared on record open interest. Without Bitcoin (BTC) and Ethereum (ETH), the cryptocurrency bubble pushed the market price to $935 billion, exhibiting risk-taking beyond Layer 1 networks.
Privacy Coins Rise with Regulation & BTC Rally
FATF debates on digital identity management and “travel rule” compliance have fuelled worldwide privacy coin demand on cryptocurrency exchanges. Tokens using zero-knowledge proofs or burn-based shield transactions are becoming popular as authorities in big countries discuss on-chain KYC rules. Users looking for transactional secrecy are driving this change. Concurrent with Bitcoin’s recent all-time highs, distributed derivatives platforms like Hyperliquid draw institutional order volume, boosting HYPE’s price movement.
Worldcoin Raises $135M for Global ID Push
Originally inspired by Sam Altman’s Tools for Humanity, Worldcoin has developed from an experimental identity-verification effort into a token with a strong privacy architecture. On May 21, it closed a $135 million investment round co-led by Andreessen Horowitz (a16z) and Bain Capital Crypto. The goal was to scale the World App to 26 million users and 12.5 million unique FXStreet sign-ups. This money deluge shows how confident the market is in biometric wallets using IrisHash zero-knowledge proofs for pseudonymous authentication.
The current financing will accelerate Worldcoin’s distribution of Orb devices in developing nations, giving the unbanked a digital identity. Following Visa’s “Inclusive Fintech” event in Dubai, Pools for Humanity intends to add WLD payments to cross-border remittance channels. WLD will become a privacy-conscious compliance currency by partnering with blockchain analytics companies to balance user privacy and AML standards.
WLD Tests Resistance at $1.61
The WLD traded at $1.55, above its 200-day EMA of $1.48, targeting late January resistance at $1.61.If WLD holds above $1.61. Fibonacci analysis from the $0.61 low in December to the $3.91 high in February suggests a breakout target at $2.26. The RSI at 72 indicates overbought circumstances. To control weariness risk, traders could check volume profiles on TradingView and order-book depth.
HYPE Soars with Derivatives Growth
Driven by the remarkable derivatives metrics of the distributed exchange, Hyperliquid’s HYPE token has reflected the larger altcoin surge. After the open interest for perpetual futures shot to $8.9 billion, HYPE peaked on May 23 at $35.86. A historic whale trade—a $1.1 billion, 40x-leveraged long on BTC—the first ever on Hyperliquid—catalyzed this milestone by highlighting whales’ rising inclination for institutional-grade DEXs over centralized venues.
The all-time high in open interest coincided with daily fees above $3.2 million, driving Hyperliquid’s annualized fee income to nearly $639 million monthly. Such numbers show that on-chain derivatives are developing as venues for skilled market players, competing with top centralized exchanges at peak volatility.
HYPE Follows Bitcoin
Although HYPE’s standalone catalysts include platform upgrades, such as support for cross-margin and multi-chain collateral, the token’s trajectory stays connected with Bitcoin. Risk appetite has migrated to cryptocurrencies while BTC keeps over $110,000, accentuating HYPE’s gains. Chartists note a three-week bullish engulfing pattern with RSI at 83, warning caution for almost instantaneous pullbacks. Should Bitcoin correct, HYPE might retest its major support around $32.12, a 50% Fibonacci retracement of its current move.
Zcash Hits $50.65 on Privacy Demand
One of the first users of zk-SNARKs, Zcash, resurfaced as consumers prioritize digital privacy over on-chain surveillance issues. Completing a 14% breakthrough from a rising channel, ZEC peaked at $50.65, its highest level since the halving event on May 22. On-chain analysts point to The Electric Coin Company’s planned network enhancements, which include Halo2 integration scheduled for Q3 2025, as long-term hopeful catalysts.</p>
ZEC Targets $55.40 Bullish MACD
Presumably trialing ZEC as a settlement layer for private corporate treasury transactions, financial entities investigating tokenized privacy assets are stated to be. Through selective disclosure audit systems, talks at the recent Consensus Conference in Austin emphasized Zcash’s ability to reconcile liquidity with regulatory compliance.
Technical investigations find that MACD crossed bullish while ZEC/USD’s daily candle finished above its 50-day EMA. The next obstacle is that traders should keep an eye on the 61.8% Fibonacci extension, which is close to $55.40. Rising institutional order flow, shown by volume spread analysis (VSA) on CoinMarketCap data, deviates from retail-driven surges witnessed in meme currencies.
Privacy Coins Adjust to New Rules
Privacy coins are at a crossroads as the European Union implements MiCA rules and the U.S. Securities and Exchange Commission (SEC) deliberates on stablecoin protocols. Projects with optional transparency elements like Zcash’s “viewing keys” will likely get exchange listings and custodial support. To solve FATF concerns, Monero (XMR) and Dash are building chain-split audit tools and stealth address schemes.
Altcoins Rise Macro Support
Altcoins Gain Due to a falling dollar, dovish European monetary policy, and on-chain triggers, altcoins may beat large-caps. Many prominent cryptocurrencies are overbought. Thus, risk managers advise position size and stop-loss regulations. Diverse spanning privacy currencies, layer two scaling tokens, and institutional-grade DEX tokens will help to minimize idiosyncratic drawdowns.
