Privacy coins usher in a wave of rebound.

Five hours ago, Zcash (ZEC), a representative of the privacy coin sector, experienced a massive buy-in, short-term rallying 5.3%, with the price breaking through the $469 integer level, becoming one of the few strong performers in the recent crypto market. On-chain data reveals the truth behind this rally—multiple addresses have accumulated over 120,000 ZEC, with a total buy order amount reaching $570 million. Interestingly, all these large purchases were concentrated in the lower trading zone, indicating that institutional funds are clearly optimistic about ZEC's current valuation.

Why did privacy coins suddenly turn around? Several factors are worth noting.

First, there has been a subtle shift in global regulatory attitudes. Privacy coins have long been a "hotspot" for regulation, but recently some regions have begun to establish clearer compliance frameworks. This marginal easing of policies has directly alleviated regulatory anxiety in the market. Second, leading cryptocurrencies like Bitcoin are now in sideways consolidation, prompting large funds to rotate from mainstream coins to mid- and small-cap niche coins in search of opportunities. Privacy coins with clear technical barriers naturally became the first choice in this rotation.

This sentiment has also spread across the entire privacy coin sector—Monero (XMR), Dash (DASH), and others are following the trend and strengthening, with the sector's overall increase exceeding 2%. However, it should be noted that ZEC's current trading volume has not shown a significant increase yet, and the $470 level may become a short-term resistance. Whether the subsequent rally can continue depends on two key points: first, whether whale funds will continue to add positions; second, whether the application ecosystem of privacy coins can provide fundamental support for this upward momentum.