Railgun, a privacy-focused protocol on Ethereum utilizing zk-SNARKs for confidential transactions and DeFi interactions, has experienced a remarkable 330% increase in its native token RAIL over the past week, reaching a new all-time high of $5.48 amid a broader rally in privacy coins.

This surge in RAIL's value is supported by a broader trend where privacy coins have outperformed Bitcoin and Ethereum in 2025, with the sector's market capitalization rising to $12.9 billion and trading volumes exceeding $2 billion.

Analysts believe that privacy solutions like Railgun are poised for significant growth as both institutional and retail investors increasingly seek privacy-enhanced DeFi and wallet solutions.

Railgun’s adoption is expected to accelerate further through its involvement with Kohaku, an SDK developed by the Ethereum Foundation in partnership with MetaMask and OKX Wallet, aimed at integrating privacy into EVM wallets.

The total value locked (TVL) in the Railgun network has increased by nearly 7% this October, reaching approximately $113.09 million, nearing its all-time high and indicating growing network adoption.

Railgun generates revenue through a 0.25% fee on total value locked (TVL) entering or leaving privacy pools, which could lead to increased revenues as privacy-first strategies gain traction among wallets and DeFi platforms.

The recent rally has been bolstered by endorsements from influential figures like Vitalik Buterin, who has publicly praised Railgun and used the protocol, boosting its credibility and visibility.