Zcash exploded this year: 2 privacy coins to watch in 2026

As 2025 draws to a close, one of the cryptocurrency’s standout stories must be Zcash (ZEC) and its outperformance as the privacy coin narrative took hold.

ZEC’s explosion, marked by a staggering jump from lows of $60 in late September to near $700 in mid-November, thrust privacy-focused digital assets into the spotlight.

Key catalysts have included institutional enthusiasm, technological advancements, and growing adoption.

Zcash, Dash and even Monero gained significantly before paring these gains towards the end of the year. 

Looking ahead to 2026, experts anticipate that the privacy narrative will intensify.

It means select coins could be frontrunners in a market increasingly prioritising data security and user anonymity.

Privacy solutions are key to mainstream blockchain adoption

In the evolving world of digital assets, privacy enhancements are emerging as a cornerstone for achieving widespread blockchain integration into traditional finance.

Throughout 2025, privacy coins demonstrated remarkable resilience and growth.

Despite macroeconomic volatility, Zcash led the charge through its sharp appreciation in Q4.

According to Grayscale’s 2026 Digital Asset Outlook, the coming year is poised to usher in an “institutional era”.

Privacy infrastructure will play a pivotal role in bridging public blockchains with established financial systems.

Trends will include the adoption of confidential transaction mechanisms, with increased traction for privacy tools taking centre stage on major platforms like Ethereum and Solana.

At the heart of this trend is the fundamental necessity for privacy in financial dealings.

In conventional systems, individuals routinely expect confidentiality around their salaries, tax obligations, personal wealth, and expenditure patterns – details that remain shielded from public view.

Yet, the inherent transparency of most blockchains exposes every transaction to scrutiny, creating a significant barrier to broader acceptance.

As regulations evolve to facilitate deeper blockchain incorporation into global finance, the demand for sophisticated privacy protocols becomes imperative.

Without these safeguards, the risk of data exposure could deter institutional players and everyday users alike, stifling innovation.

Grayscale emphasises that this realisation is gaining momentum, as clearer regulatory frameworks highlight the gaps in current blockchain designs.

This could pave the way for privacy solutions to drive mainstream adoption.

Coins to watch if privacy narrative continues in 2026

Should the emphasis on privacy persist into 2026, regulatory developments and investor sentiment will be key factors.

One project likely to stand out is, you guessed it, Zcash (ZEC). Market analysts are also bullish on Aztec and Railgun (RAIL).

Grayscale’s outlook identifies these three coins as key beneficiaries of heightened focus on privacy.

Ethereum’s ERC-7984 for confidential smart contracts and Solana’s Confidential Transfers extensions are another sub-theme in this space, as will identity verification, compliance and decentralised finance (DeFi).

Zcash

Zcash (ZEC) remains the benchmark for privacy-centric cryptocurrencies.

It boasts of being a decentralized digital currency similar to Bitcoin but augmented with robust privacy-preserving capabilities through zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs).

This technology enables “shielded” transactions that conceal sender, receiver, and amount details while maintaining network verifiability.

ZEC’s edge lies in its proven track record and institutional appeal: in Q4 2025, it surged amid several catalysts.

These included a rapid influx of shielded tokens, whale accumulation, and endorsements from major players like Gemini and Grayscale. ZEC price went parabolic.