January Privacy Coin Movements: Whales Increase Holdings in Mid-Cap Privacy Coins, ZEN, RAIL, DCR Become New Funding Focus

January 16 News, as the privacy coin sector continues to heat up in early 2026, on-chain data shows that some funds are shifting from mainstream privacy coins with a market cap of several billion dollars to medium-cap projects. Multiple on-chain indicators indicate that in January, large whale accounts significantly increased their holdings of various medium-cap privacy coins, which the market interprets as an early move to position for the next phase of the privacy sector.

Among many targets, Horizen (ZEN) has become a key focus of capital attention. The project is positioned as a privacy layer protocol, emphasizing on-chain privacy computation and transactions within a compliant framework. Data shows that ZEN's price increased by over 50% in January, with a market cap of approximately $226 million. Although still significantly below its 2021 peak, long-term funds continue to enter. On-chain data indicates that Grayscale-related products have been steadily increasing their holdings of ZEN since late 2024, with current holdings accounting for over 5% of the circulating supply, signaling institutional optimism for medium-cap privacy assets.

Another privacy project favored by whales is Railgun (RAIL). This protocol is based on multiple mainstream public chains and uses zero-knowledge technology to support anonymous DeFi operations. On-chain analysis shows that over the past 30 days, RAIL balances on trading platforms have decreased, while large address holdings have increased significantly. Research indicates that Railgun processed transactions worth $2 billion in 2025, and its revenue growth provides fundamental support for its token valuation.

Additionally, Decred (DCR) has also experienced structural changes. As a Layer 1 network supporting privacy transactions, DCR's staking ratio has exceeded 62% of the total supply, reaching a new high in nearly a year. With privacy coin demand warming up, analysts believe that medium-cap privacy coins have relative advantages in liquidity and growth potential, making it easier for them to reach a market cap of one billion dollars in 2026.