Grayscale Says Zcash’s Run Is Not Over
TREE NEWS reports: Zcash (ZEC) has been one of the standout performers in crypto over the past year, climbing from roughly $60 to around $1,500 — a gain of about 25x. In a new research note, Grayscale argues that the rally is not yet fully priced in, saying the valuation has not reached a ceiling and that the move largely reflects a low prior base combined with a large addressable market.
The asset manager points to Zcash’s positioning in the privacy-coin segment as a key driver, noting that by market capitalization ZEC has re-established itself among the largest privacy-focused assets. Grayscale frames the upside as a function of both market-share expansion within privacy usage and a broader re-rating of the sector.
Why Privacy Is Back on the Agenda
The renewed interest in Zcash comes amid a wider shift in how market participants think about on-chain transparency. Institutional adoption of public blockchains has made transaction visibility a compliance feature for some and a liability for others, pushing demand toward protocols that offer optional privacy through zero-knowledge proofs.
- Shielded transactions: Zcash’s zk-SNARK-based shielded pools allow users to transact without exposing sender, receiver, or amount, a feature that has drawn fresh attention as surveillance concerns grow.
- Halving-driven supply dynamics: The network’s issuance schedule has tightened, reducing new supply and amplifying price sensitivity to demand shifts.
- Sector rotation: Capital that previously sat in large-cap privacy names has rotated toward Zcash, helping it capture share within the category.
Reading the Grayscale Thesis Critically
Grayscale’s argument rests on two pillars: a low starting base and a large total addressable market. Both are plausible, but both are also difficult to verify. A 25x move in twelve months mechanically makes further percentage gains harder to achieve, and the privacy-coin segment remains exposed to regulatory risk. Exchanges in several jurisdictions have delisted or restricted privacy assets, and Zcash’s shielded pools have historically attracted scrutiny from regulators concerned about illicit finance.
That said, the demand case is not purely speculative. If privacy becomes a standard expectation for on-chain users rather than a niche preference, the addressable market for Zcash expands materially. Grayscale’s framing suggests it sees the current price as reflecting a fraction of that potential rather than the full opportunity.
What to Watch Next
Three factors will determine whether the thesis holds. First, growth in shielded-pool usage — the clearest on-chain proxy for genuine privacy demand. Second, regulatory treatment of privacy coins in major markets, particularly the US and EU, where policy clarity could either unlock or foreclose institutional participation. Third, whether Zcash can convert speculative interest into sustained network activity rather than a single momentum-driven spike.
For now, Grayscale’s message is that Zcash’s re-rating is a story about market share, not just price. Whether the market agrees will depend on whether privacy transitions from a feature to a requirement.
