Here’s why privacy coins could lead the crypto rally in 2026
Privacy coins have outperformed the broader cryptocurrency market in 2025, with gains of nearly 290%. The growing user base, pool size, and monthly withdrawals on the cryptocurrency tumbler Tornado Cash reflect a surge in demand for on-chain anonymity amid regulatory pushes, such as the 2025 US GENIUS Act, and the Markets in Crypto-Assets Regulation (MiCA) in the European Union (EU). Additionally, the increasing number of wrench attacks, which are real-world assaults to steal digital assets, risks the social identity of holders worldwide.
Experts, including venture capital firm Andreessen Horowitz (a16z), expect privacy coins rally to extend in 2026, driven by narratives such as “secrets-as-a-service” and “spec is law.”
