The price of the RAIL token surged 28,71% over the past 24 hours after Ethereum co-founder Vitalik Buterin executed a transaction exceeding $2.6 million via the Railgun protocol. This is not the first time Buterin has used privacy-enhancing tools to move assets. News of the transfer comes amid ongoing discussions about the role of privacy in the Ethereum ecosystem.
What Happened
On Wednesday, Vitalik Buterin transferred around $2.6 million worth of cryptocurrencies using Railgun, a protocol that enables transaction data to remain private on the blockchain. The assets included ETH and USDC. The purpose of the transaction remains unknown, but the operation is consistent with Buterin’s past behavior. He has been using Railgun regularly since early 2024.
How Railgun Works
Railgun is a protocol designed to provide privacy in decentralized finance (DeFi). Unlike standard wallets, it leaves no public trace on the blockchain, allowing users to make transactions without linking them to a specific address. Railgun integrates directly with DeFi protocols, unlike mixers like Tornado Cash, which are used only for anonymous wallet-to-wallet transfers.
Unlike Tornado Cash, Railgun employs zero-knowledge proofs and built-in filters that help block attempts at money laundering. According to Buterin, in February 2025, the Railgun team successfully thwarted one such attempt.
Recently, the Railgun team reported that May 2025 marked another record-breaking month for the project. According to their statement, it was the 13th consecutive month in which the protocol generated over $300,000 and processed more than $140 million in shielded transactions. Project representatives emphasized that each transaction through the system further improves user privacy.
