3 Under-the-Radar Privacy Coins Crypto Whales Are Accumulating in January 2026

• Why Are Crypto Whales Betting Big on Privacy Coins in 2026?
• 1. Horizen (ZEN): Grayscale’s Stealth Bet
• 2. Railgun (RAIL): The ZK-Powered Dark Horse
• 3. Decred (DCR): The Staking Juggernaut
• The Bottom Line
• Privacy Coins FAQ: Your Questions Answered

January 2026 has seen a surge in accumulation activity for mid-to-low-cap privacy coins, signaling strategic positioning by crypto whales ahead of anticipated capital inflows into the sector. This article dives into three lesser-known privacy-focused tokens—Horizen (ZEN), Railgun (RAIL), and Decred (DCR)—that are attracting significant whale interest. From Grayscale’s growing ZEN holdings to Railgun’s undervalued potential and Decred’s staking boom, we unpack why these projects are poised for growth. Buckle up for a deep dive into the data, trends, and expert insights shaping this niche.

Why Are Crypto Whales Betting Big on Privacy Coins in 2026?

The privacy coin narrative is heating up again, and this time, it’s not just about Monero or Zcash. Institutional and retail investors are diversifying into mid-cap privacy projects, drawn by their compliance-friendly features and untapped upside. With regulatory clarity improving (well, sort of), protocols like Horizen and Railgun are bridging the gap between anonymity and accountability. Meanwhile, Decred’s hybrid consensus model is turning heads. Let’s break down the top 3 contenders.

1. Horizen (ZEN): Grayscale’s Stealth Bet

Built on Ethereum’s Layer-2 network Base, Horizen offers regulatory-compliant privacy for on-chain transactions—a rare combo that’s got Grayscale doubling down. Their Grayscale Horizen Trust now holds over 948,000 ZEN tokens (5% of circulating supply), per CoinGlass data. Despite a 70% price drop since late 2024, ZEN rallied 50% in January alone. "We’re loading up on ZEN—it’s primed to follow XMR and DASH’s explosive moves," says The Whale Pod. At a $226M market cap, ZEN trades 90% below its 2021 peak, making it a high-risk, high-reward play.

Source: CoinGlass

2. Railgun (RAIL): The ZK-Powered Dark Horse

This privacy toolkit operates across Ethereum, Polygon, and Arbitrum, using zero-knowledge proofs to anonymize DeFi activity. Whale wallets boosted RAIL holdings by 24% in January, while exchange reserves dropped 5% (Nansen). Messari reports Railgun processed $2B in shielded/unshielded volume in 2025, generating $5M revenue. "At $3.10, RAIL trades at a 50% discount to our $6.26 base valuation," notes Messari’s Railgun Quant. With a $165M market cap and institutional adoption rising, RAIL could be this cycle’s sleeper hit.

Source: Nansen

3. Decred (DCR): The Staking Juggernaut

Decred’s hybrid PoW/PoS blockchain now has over 10M DCR staked (62% of supply)—the highest since March 2025. Its privacy features and governance model have propelled it into CoinGecko’s top 5 privacy coins by market cap ($479M). Analysts like AltCryptoTalk see breakout potential: "DCR’s accumulation phase is over. A rally to $60 looks likely." With staking yields attracting capital, DCR offers a unique mix of privacy and passive income.

Source: Decred Charts

The Bottom Line

While mega-cap privacy coins face profit-taking, these mid-cap projects offer asymmetric upside. Just remember: liquidity risks abound, and not all privacy tech survives regulatory scrutiny. "ZEN and RAIL are our top picks for 2026’s privacy wave," shares a BTCC analyst. One thing’s clear—whales aren’t accumulating these tokens for charity.