Zcash (ZEC) has experienced a meteoric rise that mixes technical recovery and speculation. In 2025, the asset reached a market capitalization of up to $12,000 million and recorded increases between 400% and 1,800% over different periods. This move is relevant for investors, institutional custodians and regulators due to its combination of privacy demand and strong derivatives exposure. According to reports, this dynamic has already caused double-digit corrections in 24 hours and leverage spikes that amplify the risk of abrupt drops.
Zcash combines technical elements and scarcity narratives. Its privacy is supported by zero-knowledge proofs, which allow transactions to be validated without revealing details. The adoption of more user-friendly interfaces, such as the Zashi wallet launched in March 2024, boosted the use of “shielded” transactions: according to cited data, approximately 27% of the ZEC supply would be in shielded pools, increasing the anonymity set.
At the institutional level, legitimacy grew: the Grayscale ZEC Trust manages around $155 million in assets, and figures like Arthur Hayes have declared ZEC as a significant position in his family office. At the same time, the deflationary supply and the halving schedule (planned for November 2025, which will reduce the block reward from 3.125 to 1.5625 ZEC) act as catalysts that markets often interpret as bullish.
Context and impact of Zcash (ZEC)
However, the structure of the rally shows signs of overheating. Open Interest in futures exceeded $1,100 million, and there were episodes of forced liquidations where more than $16 million in short positions were liquidated; a single wallet opened a 10x position of $3.62 million, according to reports. These dynamics have caused violent swings, with drops of 10% and 17% in 24-hour windows.
Risks and opportunities clearly stem from the duality between real use and speculation. High derivatives activity increases the risk/reward ratio for custodians and exchanges. The growth of the shielded supply suggests technical adoption, but active transparent addresses have not expanded at the same pace.
The next milestone on the calendar is the halving in November 2025, which will serve as a proving ground to distinguish whether ZEC consolidates a recovery backed by fundamentals or whether the current valuation is permeated by a short-term speculative cycle.
