Railgun, ZCash hit multi-month highs as privacy tokens rebound

Privacy tokens like Railgun (RAIL) and ZCash (ZEC) returned to months-long highs, after the privacy narrative became relevant again. New use cases mean those tokens may become usable, despite previous regulatory concerns. 

Privacy tokens like RAIL and ZEC are rallying again, as the tech is becoming relevant once again. Railgun gained attention after Ethereum announced a new privacy cluster with varied confidentiality projects. ZCash recently reiterated the ‘privacy is normal’ slogan, which aims to lead at accepting verified, but non-transparent transactions. 

Privacy is Normal. https://t.co/txbjTp8jRb

— Zcash 🛡️ (@Zcash) October 8, 2025

The recent trend extended the gains of ZEC from its previous rally. ZEC recently peaked at $179.46, and is currently at the $173 level. The privacy coin is now trading at levels not seen since December 2021. 

ZEC had its own private rally, as traders remembered the long-running project. In the past, ZEC has held several minor recoveries, though remaining far from its initial valuation in the thousands. The coin aimed at competing with BTC, though in the end it turned into a niche asset, with some limitations to being represented on exchanges. 

Privacy coins have also added unveiling technology for interacting with exchanges, removing their main obstacle to trading. Additionally, decentralized activity may offer more cross-chain opportunities for permissionless or totally anonymous activity. 

While most privacy coins and tokens are in the green, for now only the top assets are showing dramatic rallies. Monero (XMR) also rose alongside the general market trend, trading above $336. 

Why is ZEC making a return? 

ZEC already completed a 300% rally to a new price range. This time around, the expansion was not just a random market move. ZCash privacy technology was trying to remain relevant, instead of a regulatory burden. Recently, the Zashi wallet was also added on the Solana app store.

ZEC gained representation through the ZCash Trust for accredited investors, showing acceptance of privacy assets. Additionally, ZEC was added to ThorSwap, adding a layer of interoperability. Now, it is possible to swap between ZEC, BTC, and ETH, without unnecessary traces. 

Institutions are also paying more attention to privacy technology, to avoid harmful surveillance. On-chain data may be transparent, but institutions are already trying to protect their wallets. The expansion of treasury companies also calls for veiled transfers and wallets. 

RAIL grows to one-year high

Following the renewed interest in privacy technology, the native token of the Railgun mixer expanded to a one-year high. 

RAIL traded at $2.76, reaching levels not seen since the spring of 2022. Previously, RAIL had short-term rallies above $2, based on general market recoveries. In the year to date, the RAIL market cap expanded by over 400% from the lows in May. 

The Railgun project has been the focus of Vitalik Buterin’s donations, with up to $5M in total donations over the years. Buterin himself has used Railgun, while advocating for veiled transactions. Railgun vets transactions and can check for blacklist wallets, unlike TornadoCash, which has no barriers to usage.

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