Ethereum News Today: Privacy Coins Rise Amid Regulation: Zcash's Strategy Drives Sector Resilience

Zcash (ZEC) has emerged as a pivotal force in the privacy coin sector, driven by recent integrations with decentralized platforms, institutional adoption through the Grayscale Zcash Trust, and technical upgrades like zk-SNARKs-based shielded transactions ZEC Privacy Coin: Why Zcash is Gaining Momentum in the Crypto Market^[1]. Its price surged over 60% in 24 hours and 275% in a month, breaking multi-year downtrends against Bitcoin ZEC Privacy Coin: Why Zcash is Gaining Momentum in the Crypto Market^[1]. This resurgence has sparked renewed interest in privacy-focused cryptocurrencies, with low-cap coins like Syscoin (SYS), Celo (CELO), and iExec RLC (RLC) showing early momentum Which Low-Cap Privacy Coins Could Benefit from the Zcash Effect?^[2].

Syscoin, which combines Bitcoin's security with Ethereum-like smart contracts, saw its 24-hour trading volume surge over 1,200% to $50 million, with the token up 8.1% to $0.031 Which Low-Cap Privacy Coins Could Benefit from the Zcash Effect?^[2]. Celo (CELO), an Ethereum Layer 2 blockchain, rose 7.08% to $0.30, with a 115.7% volume increase to $56 million, driven by strong South Korean trading activity Which Low-Cap Privacy Coins Could Benefit from the Zcash Effect?^[2]. iExec RLC gained 8.41% to $0.94, with daily volume up nearly 400% to $38 million following a security audit for its Ethereum-Arbitrum bridge Which Low-Cap Privacy Coins Could Benefit from the Zcash Effect?^[2]. These gains align with Zcash's broader market narrative of privacy and utility, as Zcash's shielded pool technology and recent halving event in November 2025 position it as a benchmark for the sector ZEC Privacy Coin: Why Zcash is Gaining Momentum in the Crypto Market^[1]^4].

Zcash's success has also been fueled by strategic integrations, such as its adoption on THORSwap, a decentralized exchange enabling cross-chain trading ZEC Privacy Coin: Why Zcash is Gaining Momentum in the Crypto Market^[1]. This has enhanced Zcash's accessibility and liquidity, a model that low-cap privacy coins could replicate to attract similar attention. For instance, Zcash's partnership with Zashi CrossPay, a private cross-chain payment solution, underscores the importance of interoperability in expanding a privacy coin's utility ZEC Privacy Coin: Why Zcash is Gaining Momentum in the Crypto Market^[1].

However, regulatory challenges persist. Global transaction volumes for privacy coins reached $250 billion in 2025, but 73 exchanges delisted privacy coins in 2025, up from 51 in 2023 . Monero (XMR) dominates the privacy coin market with 58% of total capitalization, while Zcash holds 21% despite decreased user adoption in regulated markets . Projects like Zcash are exploring compliance-friendly solutions, such as optional transparency features (e.g., viewing keys), though adoption remains low .

The Zcash effect highlights the interplay between technological innovation and market dynamics. Zcash's third halving in November 2025, coupled with community-driven development funding until 2028, signals long-term sustainability What is Zcash (ZEC)? The Privacy Coin Using Zero-Knowledge^[3]. Low-cap privacy coins may benefit from similar structural upgrades, such as Celo's focus on mobile-first transactions and stablecoin integration , or iExec RLC's emphasis on decentralized computing Which Low-Cap Privacy Coins Could Benefit from the Zcash Effect?^[2].

In summary, Zcash's resurgence demonstrates that privacy coins can thrive despite regulatory headwinds when paired with robust technical infrastructure, institutional adoption, and strategic partnerships. Low-cap coins showing early momentum-Syscoin, Celo, and iExec RLC-are leveraging these factors to capitalize on the Zcash-driven narrative, though their long-term success will depend on navigating compliance frameworks and maintaining user trust.