Privacy coins have recently experienced a collective surge, with ZEC's market cap exceeding $7 billion and DASH's contract volume hitting record highs, drawing significant market attention. This phenomenon is driven by multiple factors:

* Regulatory Catalysis: The US Department of Justice's seizure of $15 billion in Bitcoin assets from the founder of Cambodia's Prince Group raised concerns about cryptocurrency anonymity, boosting demand for privacy coins.

* Celebrity and Institutional Endorsement: Silicon Valley investor Naval has repeatedly publicly supported ZEC, viewing it as "insurance for Bitcoin." Holdings by institutions like Grayscale and listings on Coinbase have also brought liquidity and trust to privacy coins.

* Continuous Technological Upgrades: ZEC released a new roadmap focusing on optimizing wallet privacy and usability, with its shielded pool token supply surpassing 4.9 million. DASH is advancing its testnet, planning support for private DeFi and performance improvements.

* Market Skepticism: Some viewpoints suggest privacy coins might be used as anonymous exchange tools to facilitate large-scale Bitcoin sell-offs, a speculation intensified by BTC's recent downward trend.

Despite the renewed热度 (heat) for privacy coins, some projects are accused of having removed privacy features. Investors need to be wary of hype risks and rationally assess the actual value of projects.

Summary

Expand

Author: Wenser, Odaily Star Daily

With ZEC's market cap breaking $7 billion to new highs and DASH's contract volume creating historical records, privacy sector tokens have returned to the main market stage, making one wonder what year it is. As the market trends downwards, privacy coins have become one of the few sectors remaining resilient or even continuously rising, leading many to place high hopes on them. Crypto KOL Ansem places ZEC at the same height as BTC; BitMEX co-founder Arthur Hayes has twice called for ZEC to rise to $10,000. Behind such狂热 (fanatical) growth, privacy coins are actually playing an alternative "value transfer" role. Odaily Star Daily will briefly analyze and discuss the truths behind the privacy coin sector's surge in this article for readers' reference.

Reignited Market Enthusiasm for Privacy Coins: Analysis of Multiple Factors

It is worth mentioning that the emergence and development of privacy coins did not happen overnight.

As early as 2014, DASH was known in the market as a "privacy token." Before it, Bytecoin, which introduced the CryptoNote protocol and used Ring Signatures technology to achieve anonymous transactions, was a pioneer in the sector.

In 2016, ZEC was born, characterized by its use of zk-SNARKs (zero-knowledge proof technology) to achieve "optional privacy," giving users the choice between transparent or shielded transactions. During the same period, XMR forked from Bytecoin, using the RingCT protocol to provide default full privacy protection, thus gaining market popularity.

After 2019, due to regulatory pressure and exchange delistings, privacy coins once cooled down, but new privacy coin projects still emerged, such as ZEN introducing the concept of sidechain privacy, and ARRR achieving 100% mandatory privacy.

Strictly speaking, privacy coins can be called the cryptocurrency sector "most in line with the spirit of decentralization after BTC." Looking at the recent collective surge of the privacy coin sector, besides high-profile endorsement from Silicon Valley investor Naval for ZEC, there are still multiple underlying reasons—

US Government Seizure of $15 Billion BTC May Be the Direct Trigger

On the 14th of this month, the "US Department of Justice's seizure of a massive amount of BTC assets from Cambodian Prince Group founder Chen Zhi" was made public through a lawsuit. These assets, totaling 127,271 BTC valued at $15 billion, cast a shadow over the past "advantages" of the cryptocurrency market like decentralization and anonymity.

When regulatory enforcement targets a specific individual offline, even if that person holds vast asset wealth, they are powerless against the crackdown. Consequently, market demand and attention for privacy coins have surged again.

Celebrity Endorsements and Institutional Backing: Privacy Coins Regain Liquidity

In the recent surge, the price increase of ZEC, as a benchmark in the sector, has undoubtedly been the most prominent. Investigating the initial trigger for its continuously rising price, it actually started with Silicon Valley investor Naval quoting a post by Helius founder Mert on October 1st: "Bitcoin is insurance against fiat. ZCash is insurance against Bitcoin." At that time, ZEC's price was only around $68.

On October 20th, Naval mentioned ZEC again, emphasizing its advantages: "(Even though privacy coins like XMR faced CEX delistings), this is why Zcash offers the transparent option—to remain listed on exchanges for as long as possible. However, as we gradually enter the DEX era, this is now less important." His words showed full confidence in ZEC's technical roadmap.

The investment mogul, a billionaire, acted like a "butterfly flapping its wings," triggering a fervent "privacy coin storm" in the crypto market.

Additionally, the asset holdings of the famous asset management institution Grayscale's ZCSH Trust (over $100 million) and the Coinbase listing have also brought a significant institutional endorsement effect for ZEC and the entire privacy coin sector,随之而来 (followed by) market liquidity.

[Naval openly promoting]

Ongoing Development of Privacy Projects: Continuous Technological Upgrades

Recently, the ZEC development organization Electric Coin Co. (ECC) released its Q4 2025 roadmap, focusing on reducing technical debt, enhancing privacy and usability for Zashi wallet users, and ensuring smooth management of the development fund. Key plans include: adding temporary transparent addresses for all ZEC swaps using the NEAR Intents protocol, generating a new transparent address after an address receives funds, and supporting Pay-to-Script-Hash (P2SH) multisignature for Keystone hardware wallets.

Meanwhile, the latest data shows, possibly influenced by the ecosystem's Orchard upgrade, the total amount of tokens in Zcash's Shielded Supply recently exceeded 4.9 million, reaching 4.927 million, accounting for about 30% of the circulating supply,不言自明 (speaking volumes) about real adoption.

[ZEC Shielded Pool Token Supply]

On the other hand, the veteran privacy coin DASH is also advancing the development of its Evolution testnet, with subsequent plans to support private DeFi, integrate cross-chain bridges (like Solana integration) to increase TPS to 1000+, potentially attracting more new projects to join its ecosystem.

In the crypto market, tokens are king, but technical strength is also indispensable. Without continuously improving technology and user experience, no matter how high the token price rises, it终究 (ultimately) is just a moon in the mirror or flowers in the water, leaving investors with only a mess.

Surface Privacy, Actually a Dumping Medium? Is Privacy Coins' Value Just BTC Exchange?

Apart from the more objective facts above, another speculative possibility behind the privacy coin surge is their value as "anonymous exchange cash."

Crypto KOL CryptoMaid posted: "What ZEC, ZEN, XMR... the main function of these anonymous coins. Since over a decade ago, there has only been one—when someone wants to sell Bitcoin anonymously, they first exchange it for these anonymous coins through some gateways, then slowly sell off on third or fourth-tier exchanges. So they get a major pump every bull cycle. They have long been outside the mainstream narrative of the coin circle."

It must be said, considering BTC's recent downward trend, this viewpoint holds some reference value.

Often, so-called "decentralization" and "privacy" are just packaged concepts used for selling off, while what's more important are the interests carried behind these concepts.

[Image: People bustling, profit coming and going]

Where people bustle, profit follows; this is especially true in the crypto market.

Conclusion: Privacy Isn't a "Cure-All," Hype is Only a Quick Fix

Of course, privacy coins are not a "cure-all." As Super Jun from Benmo Community posted, "Upon researching, I found out that two certain privacy coins actually removed their privacy functions two years ago, so按理 (theoretically) they shouldn't count as privacy coins anymore." And when checking the withdrawal for one of them, the project didn't even have its own mainnet anymore, just a regular token hosted on the Base chain. (Odaily Star Daily Note: Multiple users in the comments pointed out that this view targets the privacy token project ZEN.)

On the path to pursuing privacy, no one hopes to participate in a pure project that waves the banner of "decentralized ideals" just for the love of it, but even fewer want to become mere "air token investors." After all, the cost of the latter is often much more painful.

Privacy coins have recently experienced a collective surge, with ZEC's market cap exceeding $7 billion and DASH's contract volume hitting record highs, drawing significant market attention. This phenomenon is driven by multiple factors:

* Regulatory Catalysis: The US Department of Justice's seizure of $15 billion in Bitcoin assets from the founder of Cambodia's Prince Group raised concerns about cryptocurrency anonymity, boosting demand for privacy coins.

* Celebrity and Institutional Endorsement: Silicon Valley investor Naval has repeatedly publicly supported ZEC, viewing it as "insurance for Bitcoin." Holdings by institutions like Grayscale and listings on Coinbase have also brought liquidity and trust to privacy coins.

* Continuous Technological Upgrades: ZEC released a new roadmap focusing on optimizing wallet privacy and usability, with its shielded pool token supply surpassing 4.9 million. DASH is advancing its testnet, planning support for private DeFi and performance improvements.

* Market Skepticism: Some viewpoints suggest privacy coins might be used as anonymous exchange tools to facilitate large-scale Bitcoin sell-offs, a speculation intensified by BTC's recent downward trend.

Despite the renewed热度 (heat) for privacy coins, some projects are accused of having removed privacy features. Investors need to be wary of hype risks and rationally assess the actual value of projects.

Summary

Expand

Author: Wenser, Odaily Star Daily

With ZEC's market cap breaking $7 billion to new highs and DASH's contract volume creating historical records, privacy sector tokens have returned to the main market stage, making one wonder what year it is. As the market trends downwards, privacy coins have become one of the few sectors remaining resilient or even continuously rising, leading many to place high hopes on them. Crypto KOL Ansem places ZEC at the same height as BTC; BitMEX co-founder Arthur Hayes has twice called for ZEC to rise to $10,000. Behind such狂热 (fanatical) growth, privacy coins are actually playing an alternative "value transfer" role. Odaily Star Daily will briefly analyze and discuss the truths behind the privacy coin sector's surge in this article for readers' reference.

Reignited Market Enthusiasm for Privacy Coins: Analysis of Multiple Factors

It is worth mentioning that the emergence and development of privacy coins did not happen overnight.

As early as 2014, DASH was known in the market as a "privacy token." Before it, Bytecoin, which introduced the CryptoNote protocol and used Ring Signatures technology to achieve anonymous transactions, was a pioneer in the sector.

In 2016, ZEC was born, characterized by its use of zk-SNARKs (zero-knowledge proof technology) to achieve "optional privacy," giving users the choice between transparent or shielded transactions. During the same period, XMR forked from Bytecoin, using the RingCT protocol to provide default full privacy protection, thus gaining market popularity.

After 2019, due to regulatory pressure and exchange delistings, privacy coins once cooled down, but new privacy coin projects still emerged, such as ZEN introducing the concept of sidechain privacy, and ARRR achieving 100% mandatory privacy.

Strictly speaking, privacy coins can be called the cryptocurrency sector "most in line with the spirit of decentralization after BTC." Looking at the recent collective surge of the privacy coin sector, besides high-profile endorsement from Silicon Valley investor Naval for ZEC, there are still multiple underlying reasons—

US Government Seizure of $15 Billion BTC May Be the Direct Trigger

On the 14th of this month, the "US Department of Justice's seizure of a massive amount of BTC assets from Cambodian Prince Group founder Chen Zhi" was made public through a lawsuit. These assets, totaling 127,271 BTC valued at $15 billion, cast a shadow over the past "advantages" of the cryptocurrency market like decentralization and anonymity.

When regulatory enforcement targets a specific individual offline, even if that person holds vast asset wealth, they are powerless against the crackdown. Consequently, market demand and attention for privacy coins have surged again.

Celebrity Endorsements and Institutional Backing: Privacy Coins Regain Liquidity

In the recent surge, the price increase of ZEC, as a benchmark in the sector, has undoubtedly been the most prominent. Investigating the initial trigger for its continuously rising price, it actually started with Silicon Valley investor Naval quoting a post by Helius founder Mert on October 1st: "Bitcoin is insurance against fiat. ZCash is insurance against Bitcoin." At that time, ZEC's price was only around $68.

On October 20th, Naval mentioned ZEC again, emphasizing its advantages: "(Even though privacy coins like XMR faced CEX delistings), this is why Zcash offers the transparent option—to remain listed on exchanges for as long as possible. However, as we gradually enter the DEX era, this is now less important." His words showed full confidence in ZEC's technical roadmap.

The investment mogul, a billionaire, acted like a "butterfly flapping its wings," triggering a fervent "privacy coin storm" in the crypto market.

Additionally, the asset holdings of the famous asset management institution Grayscale's ZCSH Trust (over $100 million) and the Coinbase listing have also brought a significant institutional endorsement effect for ZEC and the entire privacy coin sector,随之而来 (followed by) market liquidity.

[Naval openly promoting]

Ongoing Development of Privacy Projects: Continuous Technological Upgrades

Recently, the ZEC development organization Electric Coin Co. (ECC) released its Q4 2025 roadmap, focusing on reducing technical debt, enhancing privacy and usability for Zashi wallet users, and ensuring smooth management of the development fund. Key plans include: adding temporary transparent addresses for all ZEC swaps using the NEAR Intents protocol, generating a new transparent address after an address receives funds, and supporting Pay-to-Script-Hash (P2SH) multisignature for Keystone hardware wallets.

Meanwhile, the latest data shows, possibly influenced by the ecosystem's Orchard upgrade, the total amount of tokens in Zcash's Shielded Supply recently exceeded 4.9 million, reaching 4.927 million, accounting for about 30% of the circulating supply,不言自明 (speaking volumes) about real adoption.

[ZEC Shielded Pool Token Supply]

On the other hand, the veteran privacy coin DASH is also advancing the development of its Evolution testnet, with subsequent plans to support private DeFi, integrate cross-chain bridges (like Solana integration) to increase TPS to 1000+, potentially attracting more new projects to join its ecosystem.

In the crypto market, tokens are king, but technical strength is also indispensable. Without continuously improving technology and user experience, no matter how high the token price rises, it终究 (ultimately) is just a moon in the mirror or flowers in the water, leaving investors with only a mess.

Surface Privacy, Actually a Dumping Medium? Is Privacy Coins' Value Just BTC Exchange?

Apart from the more objective facts above, another speculative possibility behind the privacy coin surge is their value as "anonymous exchange cash."

Crypto KOL CryptoMaid posted: "What ZEC, ZEN, XMR... the main function of these anonymous coins. Since over a decade ago, there has only been one—when someone wants to sell Bitcoin anonymously, they first exchange it for these anonymous coins through some gateways, then slowly sell off on third or fourth-tier exchanges. So they get a major pump every bull cycle. They have long been outside the mainstream narrative of the coin circle."

It must be said, considering BTC's recent downward trend, this viewpoint holds some reference value.

Often, so-called "decentralization" and "privacy" are just packaged concepts used for selling off, while what's more important are the interests carried behind these concepts.

[Image: People bustling, profit coming and going]

Where people bustle, profit follows; this is especially true in the crypto market.

Conclusion: Privacy Isn't a "Cure-All," Hype is Only a Quick Fix

Of course, privacy coins are not a "cure-all." As Super Jun from Benmo Community posted, "Upon researching, I found out that two certain privacy coins actually removed their privacy functions two years ago, so按理 (theoretically) they shouldn't count as privacy coins anymore." And when checking the withdrawal for one of them, the project didn't even have its own mainnet anymore, just a regular token hosted on the Base chain. (Odaily Star Daily Note: Multiple users in the comments pointed out that this view targets the privacy token project ZEN.)

On the path to pursuing privacy, no one hopes to participate in a pure project that waves the banner of "decentralized ideals" just for the love of it, but even fewer want to become mere "air token investors." After all, the cost of the latter is often much more painful.