At the beginning of 2026, the privacy coin sector welcomed a dark horse. DUSK surged over 583% in just one month, successfully breaking through the $0.3 mark, reaching a 24-hour high of 129.78%, with trading volume skyrocketing by 159.16%. Behind this strong market performance, it is not merely capital speculation, but the result of multi-dimensional resonance among technology, compliance, ecology, and funding.

From a technical perspective, the turning point came with the launch of DuskEVM. This is not just a simple Ethereum compatibility solution, but an integration of Chainlink oracle and cross-chain protocol capabilities, enabling a leap from a pure privacy token to a multi-chain privacy infrastructure. This means the application boundaries of DUSK have been significantly expanded.

Breakthroughs in compliance are equally crucial. Its "default privacy + on-demand auditing" dual-track approach precisely addresses the pain points of the EU MiCA regulations. The team is advancing the application for an EU MTF license, which is rare in the privacy coin sector. Privacy coins, once deemed non-compliant, have now found a compliant pathway.

What most convinces institutional funds is the landing of RWA (Real-World Assets). The collaboration with NPEX has completed €300 million in securitized tokenization, linking virtual assets with real assets. This directly breaks the label of privacy coins as purely speculative and provides real value support.

Simultaneously, the overall privacy coin sector is warming up. Institutional capital is flooding in, and the implementation of super-staking models further locks circulating tokens, intensifying buy-side concentration and creating a positive feedback loop. From market sentiment to fundamentals, all factors point in the same direction—the wind is at our back.

However, under the lively scene, there are underlying currents. The top five addresses of DUSK control 67.72% of the tokens, a fact that cannot be ignored due to high token concentration. The relative strength index has reached 88.83, and the warning lights for overbought conditions have long been on. Short-term valuation correction pressure is significant.

Another concern is the maturity of the ecosystem. Trading volume on DEX remains sluggish, and the project's value currently heavily depends on the progress driven by institutions. If expectations change, a sharp correction could follow.

Overall, DUSK's recent surge reflects the market's rising recognition of compliant privacy assets. The long-term compliance route and RWA layout indeed have room for imagination. But investors should remember that in overbought conditions, with concentrated chips and extreme indicators, the risk of a sharp short-term pullback is very real. Before chasing the high, think carefully whether you are betting on the ecosystem landing or on continued speculation.