- Privacy coin sector surges as Zcash jumps +707% and Dash climbs +263% since late September.
- Binance dominates trading, processing 78% of all privacy coin volume.
- CryptoQuant data shows privacy coins often rally during Bitcoin’s quiet phases
Privacy coins are heating up again. According to new on-chain data from CryptoQuant, privacy-focused cryptocurrencies have entered one of their strongest performance phases in years, with Zcash (ZEC) up 707% and Dash (DASH) rising 263% since September 31, 2025. Smaller caps like Verge (XVG), Secret (SCRT), and Monero (XMR)followed with double-digit gains, signaling a full-sector breakout.
CryptoQuant’s latest report attributes the surge to renewed interest in anonymity and decentralized transactions, particularly as global regulators push for stricter identity verification in crypto. The analysis shows that privacy coin rallies often emerge when Bitcoin enters consolidation phases, suggesting traders are rotating capital toward high-beta alternatives.
Heatmap Data Reveals Strong Correlation with Bitcoin
A privacy coin heatmap published by CryptoQuant shows that periods of intense price action, marked by yellow and red zones, frequently coincide with low volatility in Bitcoin. This inverse correlation highlights a recurring market dynamic: when Bitcoin stagnates, speculative capital tends to flow into niche segments like privacy coins.
In the current cycle, that rotation appears to be accelerating, with privacy tokens collectively achieving their highest-ever market share of total crypto trading volume, around 6%, according to CryptoQuant.
Retail Traders Drive New Wave of Activity
The resurgence isn’t just institutional. CryptoQuant’s retail activity metrics show that trading frequency in futures markets for ZEC and DASH has spiked, indicating that retail FOMO is back. Both coins are now seeing record open interest levels, with trading volume surging past all previous privacy coin hype phases.
Zcash remains the standout, posting $20.0 billion in trading volume since late September, far ahead of DASH ($5.41B), Monero ($461.8M), Verge ($403.9M), and Secret ($228.2M).
Binance Captures Nearly 80% of Privacy Coin Volume
Exchange data shows Binance dominates the privacy coin market, accounting for 78% of total trading volume, followed by Bybit with 17%. Other platforms like Bitfinex, Bitget, and KuCoin contribute marginally, underscoring Binance’s central role in facilitating liquidity and retail entry for these assets.
Analysts at CryptoQuant note that most trades are occurring on centralized venues rather than DEXs, a sign that, despite regulatory pressure, centralized exchanges remain key liquidity hubs for privacy-focused assets.
Outlook: Rising Momentum and Renewed Debate
The ongoing rally has revived discussions around financial privacy and regulatory overreach, as investors weigh the balance between transparency and autonomy. With ZEC and DASH outperforming major altcoins, traders are watching to see whether this momentum can extend into 2026 or if profit-taking will cap the cycle.
For now, CryptoQuant’s metrics confirm one thing: privacy coins are back on the map, commanding record attention from traders and marking their strongest resurgence since 2021.
