Privacy-focused cryptocurrencies (Privacy Coins) are enjoying one of their biggest comebacks in years, standing out in an otherwise weak crypto market. While many major coins have slid to multi-month lows, tokens that emphasize anonymity and untraceable transactions are suddenly seeing strong buyer interest and sharp price gains.
According to data from CoinMarketCap, the combined market capitalization of privacy coins jumped around 80% in the past week, briefly reaching nearly $24 billion before cooling slightly. Dash and Decred were the strongest performers, soaring 171% and 164% respectively — a sharp contrast to Bitcoin and leading altcoins, which continue to hover near recent lows.
A big part of the momentum appears to be driven by large holders. Dash whale accumulation is now at its highest point in about ten years, with the top 100 wallets controlling roughly 37% of the total supply. Analysts say the renewed demand may be tied to institutional positioning, new technical upgrades, and a growing desire among retail investors for assets that offer more privacy and fewer compliance trade-offs.
Zcash Breaks Records After Bullish Speculation
Zcash (ZEC) also joined the rally, climbing to a new all-time high near $409. The move followed bullish comments from BitMEX co-founder Arthur Hayes, who suggested the token could potentially climb as high as $10,000 in the future. That speculation sparked a fresh wave of interest and helped pull more attention to the broader privacy coin narrative.
The enthusiasm isn’t only hype. Zcash has seen meaningful technical progress recently. The new Zashi wallet now allows easier shielded transfers, and a new integration with Solana expands private transaction capabilities across blockchain networks. Increased accessibility through Grayscale investment products and more listings on decentralized exchanges have also widened the pool of potential buyers.
Regulation Drives the Shift
Growing regulatory pressure may also be pushing investors toward privacy coins. In regions such as the UK, exchanges are preparing to report wallet ownership to tax authorities under new compliance rules. Some large Bitcoin holders may be rotating into assets that offer stronger privacy protections.
Still, analysts caution that it’s unclear how long the rally will last. The broader crypto market remains fragile, with Bitcoin trading below $102,000 at the time of writing and major altcoins struggling for direction. For now, though, privacy coins have become a rare bright spot — supported by narrative momentum, technological growth, and rising demand for digital anonymity.
Also Read: Japan’s Crypto Comeback Led by Banks and Regulators
