ZEC increased sixfold in a month, what drove this frenzy?

Core Viewpoint

2025-10-27 23:05:49

Collection

The halving, privacy narrative, and endorsements from well-known institutions and investors have jointly driven ZEC to break through the highs of 2021.

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

Summary

As the November halving approaches and interest in privacy assets reignites, Zcash (ZEC) has once again become the focus, with traders actively positioning around the narrative of privacy coins. Sources told Decrypt that despite limited on-chain growth, endorsements from well-known investors and heated discussions around privacy topics have still driven market activity. Experts indicate that the sustainability of this rise depends on market sentiment post-ZEC halving and whether user adoption can break through short-term speculation to achieve substantial growth.

Driven by a dual force of speculative fervor and the return of privacy themes, Zcash has achieved a triple-digit increase within 30 days, successfully surpassing its 2021 peak. This privacy coin skyrocketed from a low of $54 to approximately $372 within a month, making it one of 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 historical peak of $3191.93 set nearly nine years ago.

Multiple Catalysts Create a Perfect Storm

Shivam Thakral, CEO of BuyUCoin, stated that Zcash's rise is due to the perfect combination of multiple catalysts:

The upcoming November halving. It is expected that on November 18, Zcash block rewards will be halved from 3.125 ZEC to 1.5625 ZEC;
Rising privacy concerns have rekindled interest in privacy coins;
Arthur Hayes' proposed "target price of $10,000" has sparked market discussions.

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

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

The renewed interest in privacy coins has also strengthened the entire sector. Over the past week, Monero and Dash rose by 9.1% and 12.5%, respectively, as traders began to shift towards these established anonymous assets.

"As global regulations tighten and digital surveillance controversies heat up, privacy topics have returned to the spotlight," Thakral added. "Although Zcash is an established coin, its privacy narrative is clear and concise; coupled with the approaching halving, traders have found an easy-to-operate and liquid way to position themselves around this theme."

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

However, Thakral also cautioned that this rise is more driven by speculation rather than fundamental growth. The core basis for this is the limited growth in the number of Zcash's shielded transactions.

He stated that Zcash's future trajectory depends on two key factors: first, the reaction of miners and investors post-halving; second, whether the privacy narrative can break through pure speculation to achieve real user growth, avoiding a reversal where good news leads to selling.