Privacy Is Back, $Zec Surges +62% In Days

@Zcash's native token $ZEC has broken sharply higher, posting gains of around 62% over the past seven days and adding roughly 7% in the past 24 hours alone, putting it well clear of the broader market. With a current market cap approaching $10.2 billion, the token is closing in on its late-2025 peak of nearly $11.4 billion.

What Is Driving the Rally

The move has been fuelled by a combination of institutional positioning and a derivatives squeeze. The rally followed Multicoin Capital's disclosure that it had been accumulating a large Zcash position, arguing that $ZEC's shielded transactions offer protection against growing government efforts to scrutinize and tax visible crypto holdings. Multicoin co-founder Tushar Jain framed the thesis around wealth-seizure risk, noting that while "Bitcoin is censorship-resistant, no one can freeze your BTC or stop you from using it," that "doesn't stop the state from seizing known holdings through wealth taxes."

The disclosure triggered a violent short-squeeze. Zcash surged nearly 30% to $543 on Tuesday, extending its 30-day gain to more than 110% and triggering about $62 million in futures liquidations, mostly from short sellers. That made $ZEC futures the second-largest source of liquidations behind Bitcoin for the day, which is unusual for a coin its size.

Broader access and institutional infrastructure have also played a role. The most recent major development around Zcash was its listing on the Robinhood trading platform, announced on April 23, opening the token to a much larger US retail audience. Grayscale has also filed to convert its Zcash Trust (ZCSH) into the first-ever spot ETF for a privacy coin, adding further speculative momentum.

Fundamentals and Risks

On-chain data lend some support to the narrative. Roughly 30% of $ZEC's supply now sits in shielded addresses, a record level that analysts say aligns this price move more with real adoption than with past, more speculative rallies. The wider privacy sector has also been a strong performer: privacy coins outperformed the broader cryptocurrency market with a roughly 290% rise in 2025.

Not everyone is convinced the move will hold. Joao Wedson, founder and CEO of Alphractal, recently warned that the rally lacks on-chain and social support. Some analysts warn the move is technically overbought, with RSI above 82, and may need a pullback before the next leg up. Regulatory headwinds remain a structural concern: analysts warn that while privacy coins are gaining traction, they face significant regulatory challenges that could impact future gains.

For now, $ZEC is firmly back in the spotlight. Whether the current level holds will depend on whether spot demand can sustain what has, in part, been a derivatives-driven move.

Sources:
CoinDesk: Zcash Bets Turn Into Second-Largest Liquidations Behind Bitcoin as ZEC Rockets 30%
Memeburn: Why Is Zcash (ZEC) Up 69% in the Last 7 Days?
CoinDesk: Privacy Tokens' 2025 Rally May Have Legs in 2026