DASH is the third largest privacy coin by market capitalization after XMR and ZEC, but it currently faces several risks that many holders may be overlooking. Positive discussions about privacy coins dominate the community, and these warning signs may be hidden.
These signals can serve as important warnings. They may repeat past patterns, resulting in losses for DASH holders.
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DASH’s Dormant Coin Shows Signs of Circulation Stage
First, DASH coin, which had been dormant for a long time, experienced a wave of reactivation in November 2025. This change indicated a change in holder behavior. Large-scale reinvigoration of old supply typically occurs when early investors or long-term holders begin distributing coins near the top of a market cycle.
The Coin Days Destroyed (CDD) metric tracks this behavior. Multiply the amount of coins by the length of time the coins have been inactive. A spike in this indicator often indicates that a significant portion of the old supply is entering circulation again.
Historically, significant rallies in CDD have occurred near major price highs in the crypto market.
“DASH — November saw a significant reactivation of long-dormant coins, but activity has declined since then. Historically, large movements in long-dormant supply tend to appear near the top of the cycle,” said Joanne Wesson.
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A continued decline in reactivation activity does not necessarily mean that the risk is decreasing. The distribution phase can last not just days, but weeks or even months. This timeline allows large holders to quietly exit their positions. However, over time, there can be significant downward pressure on prices.
DASH whale’s concentration hits record high
The second risk is posed by increased supply concentration. Currently, the top 100 richest DASH wallets control over 41% of the total supply. This is the highest level in more than a decade, according to data from Bitinfocharts.
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According to the graph, this share has steadily risen from the 15.5% level recorded when DASH reached its all-time high in December 2017.
High supply concentration can provide stability if large investors are confident. Major holders can absorb volatility and commit to long-term positions.
However, such concentration also carries significant risks. If a small number of addresses control a large portion of the supply, their actions can have a large impact on the market. Coordinated or uncoordinated sales by whales can overwhelm the order book. This could cause a sharp decline and ripple through the derivatives market.
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DASH open interest reaches ATH, liquidation risk increases
The third risk arises from the surge in DASH open interest across derivatives markets.
DASH is currently trading at nearly $150, half its November price, but open interest has soared to over $180 million. This level is double that of November and marks the highest open interest in DASH history.
This trend reflects unprecedented levels of leverage exposure among DASH traders. This situation creates a fertile environment for large-scale liquidations. Such events may also spill over into the spot market.
Additionally, a recent BeInCrypto report highlights the shift in capital flows towards low-cap privacy coins. This trend suggests that investor expectations for large assets are declining. This could further challenge DASH’s ability to maintain upward momentum throughout the month.
