$ZEC This wave of rallying is actually no longer just a one-sided trend, but more like the rotation and activation of the entire privacy sector.

Recently, it’s clearly visible that funds are starting to flow into the privacy track, with old-school privacy coins like ZEC and XMR showing signs of movement. Essentially, this is the main capital pushing the sector horizontally.

What exactly is the privacy sector about? Basically, it’s about “anonymous transactions” and “hiding on-chain traces.”

A few years ago, when this sector first emerged, its strong anonymity features led to continuous suppression by many institutions and regulators. But the problem is—there will always be a demand for anonymous circulation in the market.

Moreover, the larger the funds and off-market capital, the more interested they are in privacy protocols. So this sector has always been very extreme: nobody pays attention during normal times, but once capital flows back in, it experiences violent surges.

This wave of ZEC is also very obvious: it’s not retail investors driving it, but sustained trend-following by certain funds. As market rotation accelerates—after AI and MEME hype—funds are starting to look for low-position leaders, and since the privacy sector’s market cap isn’t very large, a volume increase can easily lead to continuous main upward movements.

The more controversial the privacy sector is, the more funds like it, because things with demand will never truly disappear.