ZEC up 6 times in a month, what is driving this frenzy?

Original Title: Zcash Surpasses 2021 Peak as Traders Bet on Privacy Revival
Original Author: Akash Girimath, Decrypt
Translated by: Chopper, Foresight News

Summary

As the November halving approaches and market attention to privacy assets reignites, Zcash (ZEC) has once again become a focal point, with traders actively positioning around the privacy coin narrative. Sources told Decrypt that despite limited on-chain growth, endorsements from well-known investors and heated discussions about privacy have continued to drive market activity. Experts say the sustainability of this rally depends on market sentiment after the ZEC halving and whether user adoption can break through short-term speculation to achieve substantial growth.

Driven by a wave of speculation and the return of the privacy theme, Zcash achieved triple-digit gains within 30 days, successfully surpassing its 2021 high. This privacy coin soared from a low of $54 to around $372 within a month, ranking among the best-performing assets in the market.

ZEC historical price trend, source: CoinMarketCap

This price is 11.5% higher than the closing price of $319 on May 8, 2021, but according to CoinGecko data, it is still down 88% from the all-time high of $3,191.93 set nearly nine years ago.

Multiple Catalysts Create a Perfect Storm

BuyUCoin CEO Shivam Thakral stated that Zcash's surge is the result of a perfect combination of multiple catalysts:

1. The upcoming November halving. On November 18, Zcash block rewards are expected to be halved from 3.125 ZEC to 1.5625 ZEC;

2. Rising privacy concerns have brought renewed attention to privacy coins;

3. Arthur Hayes's proposed "$10,000 target price" has sparked heated market discussions.

In the first week of October, Zcash experienced a significant upward breakout for the first time, triggered by endorsements from well-known investors such as Naval Ravikanth, as well as support from former Coinbase engineer and Helius CEO Mert Mumtaz.

As previously reported by Decrypt, Grayscale decided to allow qualified investors to invest in ZEC tokens, a move that further boosted Zcash's upward trend in the second half of this month.

The renewed focus on privacy coins has also strengthened the entire sector. Over the past week, Monero and Dash have risen by 9.1% and 12.5%, respectively, as traders turn to these established anonymous assets.

"With global regulations tightening and digital surveillance controversies heating up, privacy has once again become a focal point," Thakral added. "Although Zcash is an established coin, its privacy narrative is clear and concise; coupled with the upcoming halving, traders have found an easy and liquid way to position themselves in this theme."

Sustainability of the Rally in Doubt: Speculation Dominates, Fundamentals Await Validation

However, Thakral also cautioned that this rally is more driven by speculation than by fundamental growth. The core evidence is the limited growth in the number of Zcash shielded transactions.

He stated that Zcash's subsequent trend depends on two key factors: first, the reaction of miners and investors after the halving; second, whether the privacy narrative can break through pure speculation to achieve real user growth, avoiding a reversal where positive news is fully priced in and then sold off.

Recommended Reading:

Bloomberg Special Report: Binance’s Rival—A Comprehensive Guide to How Hyperliquid Successfully Captured Market Share

Epic Crash! BTC Barely Holds the $100,000 Mark—Why Did the Altcoin Market Suffer a Bloodbath?

The Other Side of Binance Memecoin Frenzy: 1.4% Graduation Rate, Mega Whales Suffer Over $3.5 Million in Losses