Privacy Coin Market Cap Jumps to $30B as Zcash Leads Sector Growth, 21Shares Says

Highlights:

• 21Shares says privacy token market capitalization climbed from $6.2 billion to about $30 billion over one year.
• Zcash leads the sector with a roughly $20 billion market cap and growing use of shielded transactions.
• 21Shares says institutional demand is pushing privacy features across major blockchain networks including Ethereum, Solana and Canton.

The crypto privacy sector has expanded sharply over the past year, with its total market capitalization rising from $6.2 billion to roughly $30 billion, according to 21Shares. In a September 22 research report, the asset manager said demand for private blockchain transactions is growing as users and institutions look for more control over financial data.

21Shares said privacy tokens have recorded a 111% compound annual growth rate over the past three years. The sector is also trading above its October 2025 peak, while the wider crypto market, excluding stablecoins and privacy tokens, remains about 32% below its peak.

吴说获悉，数字资产管理公司 21Shares 发布研究文章称，隐私币板块市值过去一年从 62 亿美元增长近五倍，达到约 300 亿美元。其中，Zcash 市值约为 200 亿美元，较 2021 年峰值增长约 400%。21Shares 指出，隐私币是其统计中唯一超过 2025 年 10 月高点的加密板块，较当时高点上涨…

— 吴说区块链 (@wublockchain12) September 22, 2026

Zcash Leads the Privacy Coin Market

Zcash is the largest privacy-focused network covered in the report. Its market capitalization is now around $20 billion, which 21Shares said is roughly 400% above its 2021 peak of $4 billion. Zcash uses zero-knowledge proofs, commonly called ZK proofs, to confirm that transactions are valid without exposing all transaction details publicly. Users can choose transparent transactions or move funds through shielded pools, where the sender, receiver and amount can remain private.

According to 21Shares, about $7 billion is currently held in Zcash shielded pools. Roughly 28% of ZEC supply is shielded, up from around 9% in September 2023. “Privacy is not a feature digital assets can bolt on later,” the report said.

Institutional Demand Brings Blockchain Privacy Into Focus

21Shares argues that full transparency can create problems for financial institutions. Large trades, positions and counterparties may be visible on public blockchains, which can expose firms to front-running or reveal sensitive business activity.

The Canton Network is one example of infrastructure designed around controlled disclosure. Canton says its network lets participants share only the transaction information they are permitted to see while keeping other details private. Its ecosystem includes major financial firms such as Goldman Sachs and DTCC.

Privacy is also becoming a bigger focus on major public blockchains. Ethereum’s updated roadmap describes private reads, private transactions and private proofs as core areas of development. The Ethereum Foundation has also created an Institutional Privacy Task Force to work on privacy tools that can meet audit and compliance requirements.

Solana is also working on stronger privacy through Confidential Balances. The feature can hide token balances and transfer amounts, while still letting an authorized auditor view the details when necessary.

The report also addressed the link between crypto privacy and illicit finance. Chainalysis said in its 2026 Crypto Crime Report that illicit activity remained below 1% of attributed crypto transaction volume. Stablecoins accounted for 84% of illicit transaction volume, according to the analytics firm.

21Shares Expands Zcash Access With New ETPs

21Shares has also expanded access to Zcash through traditional investment markets. On September 22, the asset manager launched physically backed Zcash and ether.fi ETPs on Euronext Paris and Euronext Amsterdam. The products give European investors exposure to ZEC and ETHFI through traditional brokerage accounts, with each carrying a 2.50% annual product fee.

Privacy has a new ETP. 🛡️

The 21shares Zcash ETP ($ZCASH) is now live on @Euronext Amsterdam & Euronext Paris — the first Zcash ETP available to European investors.

Built on Bitcoin's foundational monetary architecture that fixes its supply cap at 21 million coins, Zcash… pic.twitter.com/VghPDAp1BK

— 21shares (@21shares) September 22, 2026