Zcash (ZEC) has surged more than 1,000% over the past year, climbing from roughly $60 to around $1,500–$1,700 before a recent pullback near $1,400. According to Grayscale Head of Research Zach Pandl, that rally does not mark a valuation ceiling but reflects Zcash's low starting point and its potential market size.
On-chain data from Onchain Labs showed a whale accumulating ZEC across multiple wallets. The main wallet received about 41,690 ZEC and moved out 18,730 ZEC, leaving a net balance of roughly 22,960 tokens worth about $31.7 million, with an additional 4,200 ZEC worth approximately $5.84 million received.
Grayscale's research places Zcash and Bitcoin within its Currencies Crypto Sector. Zcash's market capitalization has grown from less than 0.1% of Bitcoin's to about 1.5%. Pandl said ZEC can continue to capture market share if it maintains strong privacy capabilities. He also linked demand to artificial intelligence, arguing that AI could create new privacy risks for transparent public blockchains and increase interest in shielded networks such as Zcash, which uses zk-SNARKs.
US-listed Zcash ETFs, however, faced pressure. They recorded zero net flows for three straight days from September 23 to 25, then posted their largest single-day outflow on Monday at about $8.12 million. The ETFs still hold about 3.75% of ZEC's total supply roughly a month after launch.
Historical comparisons provide context: XRP currently represents nearly 6% of Bitcoin's market capitalization, while XRP, Bitcoin Cash, Litecoin and Dash each reached at least 3% during the 2017–18 cycle. Arca's head of research Katie Talati noted some crypto veterans are looking toward assets that feel private and uninstitutionalized, and named Zcash among beneficiaries.
