Privacy Coins Climb on Rising Anonymity Demand Amid Regulation and Blockchain Maturity

Zcash (ZEC) and Dash (DASH) have surged more than 80% in recent weeks, leading a broader revival in privacy-focused cryptocurrencies. ZEC, the flagship privacy coin, broke above $370 for the first time since 2018, while DASH approached $100, driven by renewed retail interest, strategic short squeezes, and bullish technical indicators. The rally reflects growing demand for transaction anonymity amid regulatory scrutiny and a maturing blockchain ecosystem, according to a Coinotag analysis.

ZEC's ascent to $360–$390 is underpinned by robust derivatives activity and shifting investor sentiment. Futures open interest (OI) for ZEC reached $518 million, a record high, signaling strong short-to-medium-term confidence, according to FXStreet. However, mixed technical signals persist: While the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, a negative OI-weighted funding rate of -0.0566% suggests potential profit-taking by traders, the FXStreet piece noted.

The surge aligns with broader adoption of privacy features, as shielded transactions—using zero-knowledge proofs (zk-SNARKs)—accounted for a rising share of ZEC's supply, the Coinotag analysis found. Analysts note that ZEC's 500% October rally, fueled by celebrity endorsements and short liquidations, has created a self-reinforcing momentum, according to a Cointelegraph report. "ZEC is becoming a blue-chip privacy asset," said one blockchain analyst, highlighting its 2,200% increase in social media mindshare, the Coinotag analysis added.

Dash (DASH) has mirrored ZEC's trajectory, with its price surging past $40–$42 support levels and eyeing a $60–$65 breakout. Technical analysts draw parallels between DASH and ZEC, noting a descending wedge pattern and bullish divergence in momentum indicators, per CryptoNewsLand. A recent 16% jump in market capitalization to $575 million underscores growing institutional and retail interest, CryptoNewsLand reported.

DASH's on-chain activity and real-world adoption—such as its use at Starbucks via the DashPay wallet—position it as a practical digital currency, according to CryptoFrontNews. Analysts like CryptoBull_360 have set $100 price targets, citing a favorable risk-reward profile and ascending triangle patterns on its price chart, as covered by CryptoFrontNews.

The privacy coin rally coincides with expanding interest in quantum-resistant technologies. The global post-quantum cryptography (PQC) market, projected to grow to $2.84 billion by 2030, is driving innovation in secure transaction protocols, according to Yahoo Finance. Companies like Silicom Ltd. are leveraging PQC-ready solutions to future-proof their offerings, signaling a shift toward long-term infrastructure resilience, as noted in a Motley Fool transcript.

Meanwhile, blockchain's maturation is evident in rising onchain revenue, which hit $19.8 billion in 2025. This growth, driven by decentralized finance (DeFi) and tokenized real-world assets (RWAs), highlights the sector's transition from speculative hype to utility-driven adoption, according to a TradingView report.

Despite the optimism, risks remain. ZEC's mining centralization—via ViaBTC's 51.2% hashrate—raises network security concerns, the Coinotag analysis warned, while DASH faces potential volatility from its smaller market cap. Additionally, PQC's high implementation costs and lack of standardized algorithms could slow adoption, Yahoo Finance observed.

For now, privacy coins appear poised to capitalize on a confluence of retail fervor, technical momentum, and macro trends. As ZEC and DASH test key resistance levels, their performance will likely shape the narrative for the broader crypto market in 2026.

---