Privacy Coins saw a significant increase in November 2025, with the market value of the sector jumping by up to 80% during certain periods, reaching around $24-25 billion. The most notable beneficiaries were: Zcash ($ZEC ) which recorded its highest levels in 7 years, Dash ($DASH ) in 3 years, along with Monero ($XMR), Horizen ($ZEN ), and Decred ($DCR).
Main reasons for the rise:
Increased demand for financial privacy: With increasing government oversight, tracking transactions on the blockchain, and the spread of analytical tools like Chainalysis, investors (especially whales and institutions) are turning to coins that obscure the identity of the sender/receiver and the amount. This includes transferring large amounts of liquidity without tracking, whether for legitimate purposes (protection from competitors) or otherwise.
Capital rotation: In a market experiencing volatility (Bitcoin recently below $100,000), speculators are moving from weak sectors (like AI or Memes) to strong 'narratives' like privacy. This has led to a rapid pump in relatively low liquidity coins, amplifying the movement.
Technical and institutional developments:
Grayscale# launched the Zcash Trust with assets exceeding $85 million, attracting institutional investors.
Significant increase in shielded transactions in Zcash (from 3.8 million to 4.8 million ZEC).
Updates like Halo 2 in Zcash, and Halving# expectations in November 2025.
Concerns about regulation and CBDCs: Governments are imposing greater restrictions on transparent currencies, making privacy a 'practical necessity' rather than just a narrative. Some experts believe that privacy has become a necessity for institutions in the DeFi world and cross-border payments.
Performance examples (up to November 6, 2025):
ZEC: +266% in October, +255% weekly.
DASH: +247% weekly, +70% daily on some days.
ZEN: +56% daily.
The sector as a whole: +15-18% in just 24 hours despite the general market decline.
Warning: This rise may be 'cyclical' (cyclical pump) due to low liquidity and rapid rotation, and could be followed by a sharp correction. Regulation remains a threat (delistings, stronger AML). Always DYOR and do not invest more than you can afford to lose.