Privacy supporters pick new Ethereum-based winner amid EU online scrutiny

AZTEC, the token for the Aztec network, an Ethereum-based privacy-focused L2 rollup, has been on a positive wave since it launched, emerging as one of the standout performers in its category and in the broader market. 

The privacy token is gaining traction at a time when crypto natives are pushing back against what they perceive as the EU’s desire to further infringe on online privacy via acts like the Chat Control Act.

Aztec rides the hot hand

According to data from CoinMarketCap, the AZTEC token is up more than 70% in the past 24 hours, making it one of the best-performing tokens, especially in the privacy sector. The token hit a new all-time high today, February 20, at around $0.033, with online chatter peaking at different points during the month.

Aztec is gaining fans among privacy enthusiasts because it builds directly on Ethereum, which means it benefits directly from its liquidity, security, and extensive developer ecosystem, rather than competing as a separate chain, the way non-ETH tokens are doing.

Aztec also appears to be a beneficiary of the growing demand for privacy triggered by increasing regulatory scrutiny, surveillance concerns, and the push for confidential DeFi or stablecoins.

South Korean listings and proposed upgrade spark rally

The surge of the AZTEC token coincides with listings on top Korean exchanges like Upbit and Bithumb after its TGE on February 12.

While the token witnessed some dicey price action at launch time, it has since reversed its trajectory and is now making new all-time highs.

Aside from the exchange listings that are driving traffic and liquidity, there is also an upcoming milestone for the Aztec network known as the Alpha Network for full private smart contracts.

It is often called the Alpha rollout and is expected to bring the activation of full programmable private smart contracts on the platform’s live mainnet infrastructure. It is the next agenda on the list after the Ignition Chain, which was launched in November 2025 and focused on decentralizing consensus and block production with sequencers.

The Alpha rollout will enable things like hybrid, public-private state, and will be useful in confidential DeFi, private voting/governance, identity systems, gaming, and cross-chain privacy bridges.

The rollout is expected to happen within Q1 of 2026.

Aztec jumps to head of privacy queue

The privacy narrative on Ethereum is not as strong as it could be, while Monero and Zcash, which rode the privacy train last year, have taken a step back along with the broader market.

While Railgun has proven DeFi privacy middleware, the Tornado Cash legacy mixer has a lot of baggage that often discourages users and investors.

Cryptopolitan reported that major platforms, including Binance, Coinbase, Kraken, OKX, Huobi, and Bitstamp, have delisted or restricted Monero, citing regulatory and traceability concerns.

Zcash has had its troubles recently too. The Electric Coin Company (ECC) responsible for the development and maintenance of the Zcash protocol, walked out in January, citing irreconcilable governance conflicts and board disputes.

Privacy narrative pushed as solution to online infringement

The privacy sector continues to gain momentum in the face of regulatory scrutiny and legislation. Different countries and jurisdictions have different approaches to cryptocurrency regulation, but the EU has been singled out for stifling privacy.

The EU has adopted new Anti-money laundering (AML) rules under the Anti-Money Laundering Regulation, which effectively bans the use of privacy-focused tokens like Monero and Zcash within its regulated financial system. It also prohibits anonymous crypto accounts where regulated service providers are concerned.

Those rules are a part of a broader AML package, which complements the EU’s Markets in Crypto-Assets (MiCA) regulation. The provisions will apply from July 1, 2027.

People like Elon Musk have had choice words for the EU across different episodes of what they perceive as the bloc overstepping the boundaries of sovereignty.

When the EU fined X £120 million ($140 million) for breaching the Digital Services Act, Musk initially reacted with an X post saying that the decision was “bullshit,” before later calling for the EU to be abolished and sovereignty returned to individual countries so that their governments can better represent the people.