Zcash (ZEC) has made a powerful comeback in the cryptocurrency market, reaching an eight-year high of $388 after a remarkable 7.6% increase in just 24 hours, according to CoinMarketCap. The privacy-focused cryptocurrency now boasts a market capitalization of $6.2 billion, officially surpassing Monero (XMR) to become the leading privacy coin in the digital asset space.
This surge represents a 45% weekly gain, standing out amid the broader crypto market downturn triggered by a failed tariff agreement between the U.S. and China. While most digital assets have faced selling pressure, Zcash’s momentum reflects growing investor confidence in privacy-centered technologies.
Why Zcash Is Gaining Investor Attention
Unlike Bitcoin, where transactions are fully traceable, privacy coins like Zcash and Monero use advanced cryptographic methods to obscure transaction details and wallet addresses. This enhanced anonymity is attracting a growing community of users seeking financial privacy in an increasingly transparent world.
The recent rally was further fueled by Arthur Hayes, co-founder of BitMEX, who projected that Zcash could rally to $10,000, citing its strong fundamentals and unique value proposition. His prediction appears to have boosted market sentiment, drawing both retail and institutional investors toward ZEC.
Market Dynamics: Whales Selling Amid Rising Demand
Despite the bullish price movement, blockchain data indicates that large holders, or “whales,” have been offloading ZEC. Over the past week, Zcash saw a 63% increase in the number of token holders, yet experienced a net sale of $702,000 worth of ZEC.
Analysts interpret this as a healthy sign of market rotation, with early investors taking profits while new participants enter the market. Overall, experts highlight Zcash’s strong performance and growing adoption as evidence of its position as a significant player in the privacy coin sector.
As regulatory discussions around digital privacy continue, Zcash’s breakthrough may mark a turning point for privacy-focused cryptocurrencies—potentially setting the stage for long-term growth in this niche of the crypto market.
