The market capitalization of privacy-focused cryptocurrencies skyrocketed by 20% in just 24 hours, surpassing $10 billion, according to CoinGecko data. Leading the sector remains Monero (XMR), while Zcash (ZEC) posted the largest daily price increase of nearly 65%.
Rapid Growth Across the Privacy Token Segment
Privacy coins, designed to enhance user anonymity and transactional confidentiality, saw a sharp rise. At the time of reporting, the segment reached $10.2 billion in market cap, reflecting a 19.9% increase over the past day, with daily trading volume hitting $1.94 billion.
Other top privacy tokens include Beldex (BDX), Dash (DASH), and Decred (DCR), valued at $590 million, $405 million, and $309 million, respectively.
Notably, the MUTE SWAP by Virtuals token surged 102.5% in 24 hours, while Zcash (ZEC) climbed nearly 65%, driven in part by growing institutional interest.
Institutional Demand Fuels Zcash Growth
Analysts attribute the surge in ZEC to factors such as Grayscale Zcash Trust (ZCSH) and the implementation of zk-SNARKs technology, which appeals to institutional investors prioritizing transaction privacy.
Meanwhile, CoinMarketCap reports that the total capitalization of privacy-oriented assets exceeds $62 billion, with trading volume around $9.5 billion. The top five anonymous cryptocurrencies currently are Monero (XMR), Worldcoin (WLD), Zcash (ZEC), Immutable (IMX), and PancakeSwap (CAKE).
Why Privacy Coins Remain Popular
According to TRM Labs, privacy tokens (AECs) are designed to protect user anonymity and secure transaction details, concealing sender, receiver, amounts, and wallet balances. This makes them appealing for:
- Financial privacy protection
- Security against surveillance or high-risk environments
- Business confidentiality
- Activism and whistleblowing
However, their anonymity also makes them susceptible to misuse in illegal schemes.
Regulatory Pressures on Privacy Tokens
Regulatory risks for privacy coins are mounting. In early 2024, Binance labeled Monero and Zcash as “high-risk assets”, while OKX considered delisting some anonymous coins.
In May 2025, the European Union introduced stricter AML regulations, banning anonymous cryptocurrencies on regulated platforms starting in 2027. This includes transactions using mixers and privacy-enhancing crypto features.
Additionally, Worldcoin, which markets itself as a “digital identity for all,” has faced multiple legal issues. Hong Kong regulators flagged privacy violations in May 2024, South Korea fined the project $830,000 for data collection breaches, and Singapore authorities investigated illegal account trading.
