Zcash Experiences Privacy Boom and $85 Million Influx, Driving 400% Price Surge

Zcash (ZEC) remains at the forefront of privacy-centric cryptocurrencies, with its value climbing more than 400% over the last month amid renewed interest in confidential digital assets, as highlighted by

. At the same time, a major investor has reportedly increased their short position against , now totaling $1.41 million—a notable contrast to the token’s upward momentum, according to . This situation underscores the heightened volatility in a market where privacy-oriented projects are drawing attention from both individual and institutional investors.

According to TradingView, Zcash’s shielded supply has grown to 4.5 million ZEC—a sevenfold jump since September—as more users embrace its privacy features. Shielded transactions, powered by zero-knowledge proofs (zk-SNARKs), enable participants to conceal sender, recipient, and transaction values. Most of this increase is attributed to Zcash’s most recent privacy upgrade, Orchard, which offers greater security than earlier versions like Sprout and Sapling, TradingView notes. Experts believe the expanding shielded supply reflects rising confidence in the network, with users actively choosing to anonymize their assets rather than simply holding them in transparent wallets.

The uptick in privacy adoption has paralleled ZEC’s price surge, which has soared from $50 in September to above $350, as reported by TradingView. Institutional interest has been a significant driver, with the Grayscale ZEC Fund reportedly receiving $85 million in new investments, according to Coinrise. Blockchain data further shows that 27.5% of all ZEC is now held in shielded pools, reducing available liquidity and potentially supporting further price gains, Coinrise adds. However, this trend also raises questions about market liquidity and regulatory oversight, since privacy features can make price discovery and compliance more challenging.

The Block’s research points to Zcash’s broad appeal: its optional privacy model strikes a balance between ease of use and confidentiality, as TradingView reports. Unlike coins such as Monero that are always private,

lets users select either transparent or shielded transactions, a flexibility that has drawn parallels to conventional banking systems. This hybrid approach seems to appeal to investors looking to protect their privacy while maintaining compatibility with mainstream blockchain networks.

Despite the positive momentum, the $1.41 million short position signals that some remain doubtful about ZEC’s long-term prospects. Short sellers typically anticipate price drops, suggesting skepticism about the sustainability of the current rally. Nevertheless, technical analysis shows ongoing strength, with buyers defending key support zones and bullish signals emerging on price charts, Coinrise notes. The outcome of this standoff could determine whether ZEC consolidates or reaches new peaks.

The privacy trend is also influencing the wider crypto ecosystem. While Zcash prioritizes privacy, BlockDAG seeks to combine Proof-of-Work with Directed Acyclic Graph (DAG) technology to deliver scalability, security, and decentralization. These developments reflect the industry’s shifting focus as developers work to close both privacy and performance gaps.

As ZEC’s value and adoption continue to grow, the interplay between privacy uptake, institutional investment, and speculative activity will shape its future. For now, the $1.41 million short position is a reminder of the market’s inherent unpredictability—even as Zcash’s core appeal to privacy-minded users becomes more pronounced.