Recently, while analyzing on-chain data, I noticed that the privacy coin ecosystem is gradually but steadily heating up — this is not a sudden speculative surge, but rather a sign of more solid demand emerging.

Monero (XMR) maintained a slight upward trend around $440 by the end of the year, and the shielded privacy pool size of Zcash (ZEC) jumped from less than 2 million at the end of last year to over 5 million. Dash and other privacy coins are also gaining attention. Most notably, transaction volume and on-chain privacy usage are steadily increasing, especially the proportion of shielded transactions in ZEC — indicating that it’s not just capital speculation, but real usage scenarios are growing.

Why is this happening? The answer is quite straightforward: regulatory environments are becoming more stringent, and on-chain tracking technology is continuously improving, but ordinary users still crave to protect their transaction privacy. This is not an aggressive demand; it’s the most basic financial privacy need. The data is clear, reflecting a resurgence of concerns about being "monitored."

In the short term, the market is digesting holiday liquidity, so privacy coins will likely experience some volatility. But from a long-term perspective, the fundamental narrative of this sector remains relevant — institutions and retail investors are proving through their actions that privacy features are not just a gimmick, but a genuine demand. When the market shifts focus to infrastructure and fundamental needs, these assets tend to stand the test of time.