Cryptocurrencies focused on privacy, such as Zash and Monero, have seen a surge in popularity due to increased trading activity in emerging markets like MENA, CIS, and Southeast Asia. These regions often use these coins for cross-border transfers and everyday transactions due to currency instability and limited access to banking services.
The Global Privacy Asset Report 2025 revealed that 81% of global privacy asset trading volume originated from these regions. The report showed a 335% year-to-date growth in the sector, outpacing the broader crypto industry’s 20% gain. Total market capitalization has exceeded $34 billion, with Zash and Monero leading the charge.
The report also highlighted regional distribution, with CIS accounting for 38%, MENA for 29%, Southeast Asia for 14%, and Latin America making up only 4%. This preference for privacy coins in countries with limited traditional financial infrastructure is driving the sector’s growth.
Meanwhile, restrictive regulatory developments in Western jurisdictions are causing liquidity to shift away from stablecoins and towards privacy-focused assets. One in five traders has rotated funds from stablecoins into privacy coins, contributing to increased trading activity.
Institutional participation has also been a key factor in the rise of privacy coins, with transaction volume increasing by over 210% in Q4 alone. The demand is growing for decentralized settlement channels that offer strong liquidity without intrusive oversight.
Several macro factors may support the expansion of privacy coins heading into 2026, including rising de-dollarization pressures, regional currency controls, and renewed investment in blockchain infrastructure. Monero aims to reclaim $420, while Zash’s accumulation by large holders may drive higher resistance levels.
Source: https://www.fxstreet.com/cryptocurrencies/news/institutional-and-cross-border-demand-in-emerging-markets-fuels-privacy-coin-rally-202512121613