Zcash Surges Twelvefold in Eight Months as Analysis Points to Bitcoin Cycle and Mining-Pool Activity

Zcash, whose ZEC token uses zero-knowledge proofs to provide enhanced transaction privacy, was once the leading privacy cryptocurrency before regulatory scrutiny and intensifying competition weighed on demand. The latest rally followed the listing of a Grayscale spot ETF and the US Securities and Exchange Commission’s decision to close its investigation, easing a major legal overhang while opening a more accessible channel for institutional investors.

As of Sept. 5, ZEC had surged about 20% to cross $1,000, its highest level since 2018, as rising ETF inflows and fresh demand from miners accelerated the advance. The move triggered roughly $34 million in short liquidations. Zcash’s market capitalization climbed to $17.18 billion, overtaking Dogecoin and placing it among the 10 largest cryptocurrencies, while restoring its position as the biggest privacy coin by market value.

Zcash, launched in 2016, is one of the longest-running privacy-focused cryptocurrencies, using zero-knowledge proofs to let users shield transaction details. The latest rally has been fueled by Grayscale’s push for a spot Zcash ETF, institutional investment in mining capacity and the Ironwood mainnet upgrade, renewing investor interest in privacy coins as a distinct segment of the digital-asset market.

ZEC gained more than 30% over 24 hours to clear $830, with reports showing it briefly topping $880 for its highest level in eight years. Some gauges put the advance at 48%, while futures trading volume approached $10 billion as speculative positioning nearly doubled. The rally spread to Monero and other privacy tokens, though regulatory scrutiny and the risk of exchange delistings remain significant headwinds.

Zcash (ZEC) is a privacy-focused cryptocurrency that uses zero-knowledge proofs to conceal transaction information. ZEC advanced even as the broader crypto market weakened, signaling relatively strong capital momentum. Technical analysis cited by Cointelegraph used a cup-and-handle pattern to gauge the potential upside from a breakout.

At the time of the report, ZEC had gained 18% over three days and was approaching resistance near $650. Analysts said a decisive move above $650 could activate the pattern's measured target of $1,091, about 68% above the breakout level. However, the bullish projection could be invalidated if ZEC fails to hold above the neckline.