Zcash (ZEC), which has quietly been accumulated by institutional investors in recent weeks, posted a dramatic surge on Tuesday during Asian trading hours, shooting up 30 percent to reach $543. The weekly increase hit 60 percent, while returns in the past 30 days exceeded 110 percent. These sharp gains stood out against the backdrop of low trading volumes seen across the broader cryptocurrency market at the start of the week.
Record volume and massive liquidations
The swift price rally in ZEC was accompanied by a striking jump in trading activity. Within the last 24 hours, trading volume exceeded $1.3 billion. During this period, roughly 5,000 investors saw their futures positions liquidated, totaling $62 million in value. Of this amount, $60 million came from short positions, while just over $3 million was lost in long positions. ZEC thus witnessed the second-largest liquidations after Bitcoin futures in the same period.
Institutional interest and focus on privacy
Adding to the market excitement, leading investment fund Multicoin Capital revealed that it has been accumulating ZEC since February. Known for its sizeable portfolio in digital assets, the fund’s announcement brought renewed attention to Zcash. In a social media post, partner Tushar Jain described Zcash as a return to the original ideals behind cryptocurrency.
Referring to Zcash’s cypherpunk roots, Jain argued, “The California wealth tax initiative could be the first step toward increased government scrutiny of private assets.”
Currently under debate in California, the new initiative labeled 25-0024 targets individuals with assets exceeding $1 billion, proposing a one-time 5 percent tax on both realized and unrealized gains. If enacted, the move could generate nearly $100 billion in revenue for the state.
Jain went on to highlight that while Bitcoin is suitable for transactions, its publicly visible balances leave it open to blockchain analytics. By contrast, Zcash’s “shielded pool” feature makes it significantly more private and harder to trace, thus appealing to those seeking greater financial privacy or wishing to discreetly manage large holdings.
Record surge in privacy use
According to CoinDesk Research data published in March, around 30 percent of circulating ZEC, or roughly 5 million coins, are now held in shielded addresses that offer enhanced privacy. This figure was just 8 percent at the start of 2024, marking a substantial shift in user behavior.
The shielded pool leverages zero-knowledge proof technology, allowing transactions to be validated without disclosing any specifics. As a result, sender, receiver, and transaction amounts remain confidential.
While public ZEC transactions remain stable at around 8,500 per day, most of the dynamic activity has shifted into the shielded pool. These private transfers are not reflected in standard on-chain metrics, which can disguise the scale of growth from casual observers.
Technical outlook and future expectations
ZEC is currently trading at $543, posting a staggering rise of more than 1,400 percent since the start of the year. The token, however, still trades below its November 2025 peak near $750. Analysts point to the next key resistance area between $600 and $650, a range where the price historically moved sideways for an extended period.
Experts note that alongside the price surge, there is close monitoring of whether shielded pool usage continues to rise. Previously, sudden rallies saw private holdings lag, suggesting speculation was dominant; this time, shielded supply is at historic highs, indicating deeper adoption among real users.
Data from CryptoAppsy shows ZEC trading at $543, further underscoring its current upswing driven by increased demand for privacy features.
