By CoinAINews Staff
September 7, 2026
Privacy-focused cryptocurrencies have become the standout corner of the crypto market, with the sector now 213% above its October 6, 2025 level, according to new data from Glassnode.
The performance is striking because most major crypto sectors remain below the level they reached when Bitcoin recorded its October 2025 cycle peak. Bitcoin is still about 36% below that benchmark, while the median asset among the top 200 cryptocurrencies remains roughly 58% lower.
Privacy is the only sector in the Glassnode comparison currently trading above its October 2025 level.
Privacy Crypto Is Outperforming the Broader Market
The 213% figure does not mean that every privacy coin has gained 213%. It represents the performance of the privacy sector relative to the October 6, 2025 benchmark.
| Crypto Market Segment | Performance vs. Oct. 6, 2025 |
|---|---|
| Privacy sector | +213% |
| Bitcoin | About -36% |
| DeFi | About -27% |
| Median top-200 crypto asset | About -58% |
| Gaming | About -74% |
The gap shows how unusual the privacy-sector rally has been. While the broader market has recovered over shorter periods, most sectors have not recovered to their October 2025 levels.
Zcash Is Driving Much of the Rally
Zcash (ZEC) has been the biggest force behind the sector's performance.
Glassnode data cited in recent reporting shows ZEC up approximately 2,496% over the past year. Its market-cap ranking has climbed from around No. 82 to No. 7, and the cryptocurrency now represents roughly 62% of the privacy sector's market capitalization.
That concentration is important. A large part of the sector's headline performance is being generated by one exceptionally strong asset rather than an equal rally across every privacy cryptocurrency.
But the Rally Is Not Only About ZEC
There is another reason the Glassnode data is attracting attention: removing Zcash does not eliminate the sector's outperformance.
The privacy basket excluding ZEC is still reported to be up approximately 85% over the past year and about 56% above its October 6, 2025 level.
That suggests the privacy narrative has spread beyond a single token, although Zcash remains by far the largest contributor to the sector's overall performance.
Monero and Dash Add to the Sector Rotation
Monero (XMR) is another major beneficiary of the renewed interest in privacy-focused crypto assets.
Glassnode's reported data shows that XMR, along with Dash (DASH) and Horizen (ZEN), has outperformed Bitcoin over the most recent 90-day period.
The data also indicates that all eight privacy assets with at least one year of available history were positive over the one-year period examined.
This broader participation makes the move more significant than a simple Zcash price rally.
Privacy Sector Market Cap Expands Sharply
The sector's growth is also visible in its total market capitalization.
Glassnode data cited by recent reports puts the privacy sector at approximately $33.6 billion, compared with about $7.1 billion a year earlier.
That represents roughly $26.5 billion in additional market value, with almost half of the expansion occurring during the latest 30-day period.
The move has happened during a wider crypto rebound. About 91.5% of the top 200 crypto assets gained over the most recent 30-day period, according to the reported Glassnode data.
However, the longer-term picture remains much more selective. Only around 25 of the top 200 assets were positive over the one-year period in the cited comparison.
Why Are Privacy Coins Getting Attention Again?
Privacy has returned as a major crypto narrative at a time when blockchain transactions are becoming increasingly easy to analyze.
Bitcoin and Ethereum transactions are publicly recorded, allowing blockchain analytics firms and other observers to trace transaction flows. Privacy-focused networks take a different approach by using cryptographic mechanisms designed to make transaction information less transparent.
The exact technology varies between projects.
Monero uses privacy mechanisms designed to conceal transaction participants and amounts by default, while Zcash uses zero-knowledge technology that allows users to make shielded transactions. Other projects take different approaches to transaction mixing or confidential applications.
This creates a distinct investment narrative around financial privacy, transaction confidentiality and blockchain surveillance.
The Privacy Narrative Comes With Regulatory Risk
The same characteristics that make privacy technology attractive to some users can create challenges for regulated exchanges and financial institutions.
Privacy-focused cryptocurrencies have historically faced greater scrutiny around anti-money-laundering controls and transaction monitoring because their designs can make blockchain analysis more difficult.
That means the sector's strong market performance does not remove its regulatory risk.
For investors, exchange availability, jurisdiction-specific rules and liquidity can be just as important as the underlying technology.
Only a Few Large Crypto Assets Are Above October 2025 Levels
The strength of privacy coins becomes even clearer when looking at the largest cryptocurrencies.
Among the 25 largest assets in the cited Glassnode comparison, only ZEC, HYPE, XMR and WBT were above their October 6, 2025 levels.
Two of those four assets—ZEC and XMR—are privacy-focused cryptocurrencies.
That does not mean privacy is the only successful crypto narrative in 2026. It does show that privacy assets have performed unusually well compared with the broader market over the period being measured.
What Does the 213% Figure Actually Tell Investors?
The most important point is that 213% is a sector-level comparison, not an individual-token return.
Sector performance can be heavily influenced by the largest assets. In this case, Zcash's extraordinary rise has a major effect because it represents a large portion of the privacy sector's total market capitalization.
At the same time, the sector excluding ZEC remains significantly above the October benchmark, suggesting that the broader privacy category has also strengthened.
Investors should therefore look at both figures: the headline +213% sector performance and the much lower but still substantial +56% performance of the privacy basket excluding ZEC.
Is This Proof of a New Crypto Bull Market?
No.
The data shows strong performance from privacy assets, but it does not establish that the entire crypto market has entered a new sustained bull cycle.
The recent one-month rebound has been broad, yet longer-term performance remains uneven. Bitcoin is still below its October 2025 benchmark, while the median top-200 cryptocurrency is considerably further below it.
The more accurate conclusion is that privacy has become the leading crypto sector in the current market rotation.
What Could Determine Whether Privacy Coins Keep Leading?
- Zcash performance: ZEC currently has an outsized influence on the sector.
- Monero and other privacy assets: Continued gains outside ZEC would make the sector's rally more diversified.
- Regulation: Exchange listing policies and AML rules remain major risks.
- Liquidity: Large percentage gains need to be evaluated alongside trading depth and market participation.
- Capital rotation: Investors could shift toward Bitcoin, DeFi, AI, infrastructure or other narratives if market conditions change.
Frequently Asked Questions
Are privacy coins up 213%?
The 213% figure refers to the privacy sector's performance compared with its October 6, 2025 level. It does not mean every individual privacy coin has gained 213%.
Which privacy coin is driving the rally?
Zcash is the biggest contributor. Glassnode data cited in recent reports shows ZEC up approximately 2,496% over the past year and accounting for roughly 62% of the privacy sector's market capitalization.
Is Monero also benefiting?
Yes. Monero is among the privacy assets that have outperformed Bitcoin over the recent 90-day period in the cited Glassnode data.
How big is the privacy crypto sector?
The sector was reported at approximately $33.6 billion in market capitalization, compared with about $7.1 billion a year earlier.
Why are privacy coins outperforming?
The current move appears to reflect a combination of strong performance from Zcash, broader interest in privacy-focused crypto assets and capital rotation within the market. The available data does not establish a single cause for the entire rally.
Does the rally mean privacy coins will continue rising?
No. The sector remains highly volatile and faces regulatory, liquidity and market-rotation risks. Past performance does not guarantee future returns.
Bottom Line
Privacy-focused cryptocurrencies have become the clearest sector leader in the latest crypto market rotation.
According to Glassnode data cited in recent reporting, the privacy sector is 213% above its October 6, 2025 level, while Bitcoin remains about 36% below that benchmark and the median top-200 crypto asset is down roughly 58%.
Zcash has driven much of the move, but the strength does not disappear when ZEC is excluded. The privacy basket excluding Zcash is still reported to be 56% above the October benchmark.
For now, the numbers show a powerful sector rotation—not proof that every cryptocurrency is entering a new bull market. Whether privacy can maintain its lead will depend on continued market demand, liquidity and the regulatory environment surrounding privacy-focused digital assets.
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