Zcash Surges Over 700% Since September Amid Growing Privacy Adoption
Zcash (ZEC) has experienced a remarkable rally, surging more than 700% since September and currently trading around $457. Despite this impressive growth, Zcash remains approximately 92% below its all-time high. One of the key indicators of its rising popularity is the accelerating adoption of its privacy features, with over 30% of its total supply now held in shielded pools — the highest level seen to date.
### Zcash: A Privacy-Focused Cryptocurrency
Launched in 2016 by the Electric Coin Company (ECC), founded by Zooko Wilcox-O’Hearn, Zcash was created as a fork of Bitcoin (BTC) with a clear mission: to fix Bitcoin’s lack of transactional privacy. As Galaxy Digital highlighted in a recent report, “The goal was simple: preserve the monetary DNA of Bitcoin while fixing its most-cited design gap, the lack of transactional privacy.” Nearly a decade later, this mission is resonating more strongly than ever.
### Market Performance Amid Crypto Volatility
While Bitcoin recently suffered a sharp correction—dropping nearly 15% in a month and 8% over three months—Zcash has followed a very different trajectory. After hitting an all-time high of $5,941 in 2016 and experiencing an 80% crash, Zcash now trades around $420. This marks a 177% jump in the past month and a staggering 1,043% surge over the last three months.
Zcash’s market capitalization also reflects this bullish momentum, having surpassed $6 billion — more than its $3.6 billion peak during the 2021 bull market — and reaching $7.49 billion. This growth firmly places Zcash within the top 20 cryptocurrencies by market value.
### What’s Driving Zcash’s Rally?
A major factor fueling Zcash’s recent surge is the increasing use of its privacy-protected features on-chain. Currently, about 5.03 million ZEC—valued at roughly $2 billion—are held in shielded pools, accounting for over 30% of Zcash’s total supply. This is an all-time high and a clear sign that users are moving funds off exchanges into self-custody while shielding them for long-term holding.
In addition, more than 86% of ZEC’s daily transaction volume now originates from shielded transactions. This data suggests that high-conviction holders deeply believe in Zcash’s privacy promise and are using the network’s privacy tools extensively.
### How Zcash Privacy Works
Zcash enables users to protect their financial privacy by making their on-chain activity invisible to the public. Galaxy Digital explains that when ZEC is sent between shielded addresses, the network verifies the transaction using a cryptographic proof. Instead of revealing transaction details, the proof simply confirms, “I have the right to spend these coins, and the math adds up,” without leaking any unnecessary information.
### Innovations on the Horizon: Project Tachyon and More
Zcash’s development team continues to push the boundaries of privacy and performance. Developer Sean Bowe is leading “Project Tachyon,” a scaling initiative aimed at significantly boosting Zcash’s shielded transaction capacity. This project will redesign how the network handles synchronization and nullifier storage, potentially unlocking major performance improvements.
Moreover, the recent addition of ZEC perpetual futures on the popular decentralized exchange Hyperliquid has enhanced liquidity and trading options. Open interest in these leveraged positions has climbed to approximately $115 million as of October 30, signaling renewed market enthusiasm.
### Upcoming Developments from ECC
Looking ahead, the Electric Coin Company has unveiled its Q4 2025 roadmap, featuring several key initiatives to improve Zcash’s functionality and user experience. Highlights include:
– The introduction of temporary transparent addresses for all NEAR Intents-based ZEC transactions, enhancing interoperability and transaction flexibility.
– Support for Pay-to-Script-Hash (P2SH) multisignature functionality on the Keystone hardware wallet, expanding secure storage and transaction options for users.
As Zcash continues to innovate and its privacy adoption grows, it remains a cryptocurrency to watch in the evolving digital asset landscape.
https://bitcoinethereumnews.com/crypto/zec-news-privacy-coin-zcash-soars-700-as-galaxy-digital-highlights-growing-adoption/