- Privacy coins are gaining momentum as investors seek data protection and regulatory-resistant digital assets across global markets.
- The sector’s rapid growth reflects rising concerns over surveillance and renewed interest in blockchain-based privacy solutions.
The market cap of the privacy coin sector has exploded in the past week. From around $13 billion, its value has surged more than 80% to reach $24 billion.
According to CoinGecko, trading volume has also surged, nearly reaching $3 billion in the past 24 hours. This surge isn’t just about numbers, but also about how the market is beginning to re-evaluate the importance of privacy amid increasingly transparent, sometimes overly transparent, global conditions.
Among the tokens, three names have emerged as major stars: Zcash (ZEC) surged 51%, Dash (DASH) rose 72%, and Railgun (RAIL) led the way with an 87% increase.
Investors Turn to Privacy Amid Global Policy Shifts
This movement is quite surprising, as all three have long remained under the radar. However, it appears investors are starting to seek assets that offer greater identity protection and transaction freedom, especially amid concerns about expanding digital surveillance.
Furthermore, the recent global market climate has also been encouraging. News of a potential easing of tariffs between the United States and China is one factor driving positive sentiment.
Many investors see this as a signal that capital flows into risky assets are reopening, including small- to mid-cap altcoins like privacy coins. However, such surges are inextricably linked to community dynamics and the narratives surrounding them.
Zcash and Dash Spark Fresh Momentum in Privacy Coins
A few days ago, CNF reported that Dash was starting to gain traction again after a long hiatus. Interest in privacy-based tokens has led the Dash community to show signs of revival.
Analyst Javon Marks even stated that Dash had just recorded its biggest breakout in its history. According to his projections, the token’s price could reach $1,010, or an increase of more than 1,620% from its current position. This figure is enough to make people take a second look, although it still requires sound risk management.
On the other hand, Zcash hasn’t been sitting idle. This token price surge has been accompanied by a sharp increase in the number of coins in the shielded supply category.
Zcash’s optional privacy system allows users to move their assets to an address that is not publicly visible, thanks to zero-knowledge proof technology. Through this mechanism, the sender’s address, recipient’s address, and transaction amount are all hidden.
Zcash itself has undergone three major privacy enhancements since its launch—Sprout, Sapling, and Orchard. All three support increasingly efficient anonymous transfer mechanisms. Furthermore, there is speculation that Zcash’s rally could be the beginning of a battle for market dominance with Monero. The competition between these two major players in the privacy space doesn’t seem to be abating anytime soon.