Privacy coins like Monero (XMR) and Zcash (ZEC) are experiencing a resurgence in 2026, driven by increased investor demand for on-chain anonymity. Monero has reached new all-time highs, signaling a shift in investor sentiment towards privacy-centric assets. This trend suggests that privacy is becoming a core component of Web3 infrastructure, evolving from untraceable transfers to selective disclosure. Despite regulatory challenges, such as the EU's DAC8 directive and the UAE's ban on privacy coins, experts believe that demand for privacy will continue to grow. These regulations may push users towards decentralized exchanges and self-custody tools, reinforcing the resilience of privacy networks. Industry leaders argue that successful protocols will balance privacy with compliance, ensuring user control while meeting regulatory requirements.