What happened?
Privacy-focused cryptocurrencies popped while most of the crypto market was down, led by Zcash jumping about 248% in October to roughly a $6.5 billion market cap. Other privacy names like Monero, Litecoin (with new privacy features), and Dash also saw increased adoption and performance. Grayscale’s data shows more ZEC being held in shielded addresses, indicating real user demand for privacy features.
Who does this affect?
Retail traders and speculators chasing outperforming tokens are the most immediate beneficiaries of the rally. Institutions and enterprises exploring confidential transfers, selective disclosures, and custody solutions are beginning to adopt privacy tools and investment vehicles like trusts. Regulators, exchanges, and compliance teams are also impacted because privacy features complicate reporting, listing decisions, and oversight.
Why does this matter?
Capital may flow into privacy assets as a niche hedge or thematic bet, which can drive product creation, AUM growth, and more infrastructure investment in privacy tech. At the same time, regulatory pushback, exchange delistings, and technical hurdles could limit liquidity and increase volatility and compliance costs. In short, rising institutional interest could support long-term demand for privacy-preserving layers and services — but it also raises meaningful market and regulatory risk that could cap adoption and price stability.