Zcash Surges 700% Since September Amid Rising Privacy Coin Interest

Zcash (ZEC) has experienced a significant price increase, rising by over 700% since September. The price reached $728 on November 7, ahead of its mid-November halving, which will reduce block rewards to 0.78125 ZEC, tightening supply similar to Bitcoin's halving events.

The resurgence in privacy interest within the crypto space has contributed to Zcash's rally. Its zero-knowledge proof system is gaining renewed attention.
Over 30% of Zcash's total supply is now within shielded pools, reaching an all-time high for private usage on the network.
Technological upgrades, including the introduction of the Zashi wallet, have made private transactions more accessible, increasing user adoption.

Prominent figures like Naval Ravikant and Arthur Hayes support Zcash, with Hayes suggesting it could reach 10% to 20% of Bitcoin's value, estimating prices between $10,000 and $20,000. His Maelstrom fund holds Zcash as its second-largest asset.

However, some analysts warn the rally might be driven by speculative activity rather than long-term fundamentals. Concerns about a potential pump-and-dump scheme have been expressed, given privacy coins' historical popularity peaks in 2017. Regulatory pressures are also looming, with the European Parliament planning to restrict privacy token listings on regional exchanges from 2027.

Currently, Zcash trades at $580.67, down from a high of $734.96.