Grayscale Says Zcash Is Undervalued as AI Surveillance Drives Privacy-Coin Demand

Grayscale said the growing use of AI surveillance and data analytics is making on-chain transactions easier to track, turning financial privacy into a scarce asset. Zcash uses zero-knowledge proofs to validate transactions while keeping information private, giving it potential as “digital cash,” though regulatory and adoption hurdles remain.

Grayscale’s latest report said the market had yet to fully price in demand for financial privacy and that ZEC could benefit from a third wave of privacy adoption. However, related coverage did not disclose the report’s publication date, a ZEC price target or the projected amount of capital involved. Grayscale also warned that regulatory restrictions, the risk of exchange delistings and the effectiveness of the technology’s implementation would remain key variables affecting future performance.