Why did the price of ZEC go up?

Zcash (ZEC) increased by 3.4% in the last 24 hours, continuing a strong weekly gain of 24%. This growth is driven by positive technical signals, growing interest from big investors through Grayscale’s new investment product, and renewed attention on privacy-focused technology.

1. Big Investor Interest: Grayscale introduced a Zcash investment fund, adding credibility.
2. Price Movement: ZEC is nearing a key resistance level at $295, supported by strong trading volume.
3. Privacy Appeal: Influential voices are calling ZEC an “encrypted Bitcoin,” highlighting its privacy features.

Deep Dive

1. Institutional Adoption (Positive Impact)

Overview: Grayscale launched the Zcash Trust on October 24, aimed at accredited investors (source). This move signals growing acceptance of Zcash by large financial players. It follows JPMorgan’s decision to accept Bitcoin and Ethereum as loan collateral, which has boosted confidence in privacy-focused cryptocurrencies.

Why it matters: Institutional investment products like this reduce risks related to liquidity and attract capital from investors who want exposure to ZEC without holding the coins directly. After the announcement, ZEC’s 24-hour trading volume jumped by 300%, showing strong demand.

What to watch: Continued investment inflows into Grayscale’s Zcash Trust and listings on major exchanges.

2. Technical Momentum (Mixed Signals)

Overview: ZEC’s price recently moved above its 7-day simple moving average (SMA) of $249 and tested resistance at $295. The 4-hour price chart shows a “cup and handle” pattern, which often signals a potential rise to between $320 and $340 if the $295 level is broken. The Relative Strength Index (RSI) at 66 indicates there is still room for price growth before it becomes overbought.

What it means: Traders are optimistic after ZEC’s impressive 429% gain over the past month. However, the MACD indicator shows some short-term weakness, suggesting a possible pullback to around $234 before the price moves higher again.

Key level: Maintaining a price above $261 is important to keep the positive trend intact.

3. Privacy Demand & Regulatory Environment (Positive with Risks)

Overview: Mert Mumtaz, CEO of Helius Labs, stated on October 23 that Zcash aligns with Satoshi Nakamoto’s vision of private digital money (source). The amount of ZEC held in shielded (private) wallets reached 4.5 million coins, or 25% of the total supply, the highest ever recorded according to Yahoo Finance.

Why it matters: Recent regulatory changes in the U.S., compared to stricter European Union rules, along with concerns about central bank digital currencies (CBDCs), are increasing demand for privacy coins like ZEC. Zcash’s advanced privacy technology, called zk-SNARKs, no longer requires a trusted setup, addressing earlier criticisms.

Risk factor: The EU plans to ban privacy coins by 2027, but ZEC’s option for transparent transactions might help it comply with regulations.

Conclusion

Zcash’s recent price rally is supported by growing institutional interest, positive technical trends, and increasing demand for privacy in digital finance. While some short-term profit-taking near the $300 mark is possible, the rise in shielded transactions and Bitcoin’s market dominance (59%) could encourage investors to shift funds into altcoins like ZEC.

Key point to watch: Can ZEC close above $295 with trading volume exceeding $500 million? If not, the price could pull back to around $234.

What could affect the price of ZEC?

Zcash is gaining attention for its privacy features but faces challenges from upcoming regulations.

1. Halving & Scarcity (Nov 2025) – Mining rewards will be cut in half, reducing new supply
2. Growing Privacy Use – 30% of Zcash transactions are now private, showing increased demand
3. Regulatory Challenges – The EU plans to ban privacy coins by 2027, creating uncertainty

In-Depth Look

1. Halving Effects (Positive for Price)

What’s happening: On November 1, 2025, Zcash will undergo its third “halving,” meaning miners will receive half as many ZEC coins for validating transactions—dropping from 3.125 to 1.5625 ZEC per block. After the last halving in 2020, Zcash’s price jumped 170%. With fewer new coins entering the market (about 9,000 per day instead of 18,000), the reduced supply could push prices higher, especially if more people keep using private transactions (which are growing about 15% each month).

Why it matters: Miners currently sell about 80% of new ZEC coins. With less supply from miners, prices could rise if demand stays strong. However, since specialized mining hardware (ASICs) controls 40% of the network, price swings might be less dramatic compared to past cycles driven by general-purpose GPUs.

2. Privacy Features vs. Regulations (Mixed Outlook)

What’s happening: About 30% of all Zcash coins are now involved in “shielded” (private) transactions, thanks to improvements in the Zashi wallet and integration with privacy-focused services like NymVPN. However, the European Union’s upcoming AMLR6 rules aim to ban services supporting privacy coins by 2027, similar to bans seen in Japan and South Korea.

Why it matters: While Zcash’s advanced privacy tech (called zk-SNARKs) makes it stand out, regulatory pressure limits its growth potential. Institutional investors like Grayscale have shown interest, managing $46 million in Zcash trusts, but major exchanges like OKX and Binance have placed restrictions that reduce access for everyday users.

3. Decentralized Finance (DeFi) & Cross-Chain Use (Positive Potential)

What’s happening: Platforms like THORSwap and Router Protocol now allow private Zcash transactions across 12 different blockchains, with $9.5 million in volume since August. The upcoming Maya Protocol integration in 2026 could open up new ways to earn yields on ZEC holdings.

Why it matters: These cross-chain features reduce dependence on centralized exchanges (which currently handle only 35% of Zcash volume) and expand Zcash’s role in privacy-focused decentralized finance. This broader use could help offset some regulatory risks by creating more real-world applications.

Summary

Zcash’s future depends on whether its private transaction use can grow faster than regulatory restrictions tighten. Keep an eye on the November 2025 halving and the Maya Protocol launch in early 2026. The big question: Can Zcash maintain its “encrypted Bitcoin” status and hold a market value above $5 billion if U.S. regulators increase scrutiny on privacy technologies after upcoming elections?

“In a world of CBDC surveillance, is Zcash becoming digital gold 2.0 – or a regulatory target?”

What are people saying about ZEC?

Zcash’s privacy features and recent price jump have traders feeling both excited and cautious. Here’s what’s happening right now:

1. More users are using privacy features – 27% of Zcash (ZEC) is now shielded and untraceable
2. Price predictions vary – some expect $300, others warn it’s overbought
3. Regulatory concerns addressed – a detailed thread debunks 14 common criticisms
4. Big investors are buying – large holders keep accumulating despite risks

In-Depth Look

1. @arjunkhemani: Zcash Regulatory FUD Debunked bullish

“Shielded supply now exceeds 4.4M ZEC (27% of total)… Orchard Pool uses Halo 2 (no trusted setup).”
– @arjunkhemani (12.3K followers · 48K impressions · 2025-10-23 15:17 UTC)
View original post
What this means: This post systematically responds to regulatory fears, like worries about government backdoors, while highlighting important upgrades to Zcash’s technology. This is positive for ZEC because more shielded coins mean less supply available for trading.

2. @ThorTorrens: ZEC vs. BTC Privacy Battle bullish

“Zcash is encrypted money – Bitcoin’s ledger exposes your finances. $ZEC > $BTC.”
– @ThorTorrens (89K followers · 2.1M impressions · 2025-10-17 22:56 UTC)
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What this means: This highlights Zcash as a privacy-focused alternative to Bitcoin, especially as concerns about financial surveillance grow. It fits with ZEC’s strong 566% gain over the past 90 days but may overlook challenges in wider adoption.

3. @criptofacil: Technical Breakout Targets mixed

“ZEC could rally 40% if it breaks $287 resistance” (Portuguese analysis, Oct 8).
– @criptofacil (220K followers · 310K impressions · 2025-10-08 21:12 UTC)
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What this means: Technical analysis suggests a strong price increase if ZEC passes $287, but data from Coinglass shows a crowded trade with $21.5 million in long positions versus $3.4 million in shorts on Bybit. This means the price could drop sharply if it falls below $178.

4. Yahoo Finance: Regulatory Risks bearish

“EU’s 2027 privacy coin ban could delist ZEC from major exchanges” (Oct 25 analysis).
What this means: This is a warning that Zcash could face serious challenges if regulators decide privacy coins are illegal. It echoes what happened when OKX delisted ZEC in 2024.

Conclusion

The general view on Zcash is positive in the short term but cautious about long-term regulatory risks. Traders are encouraged by the growing use of privacy features and potential price breakouts, while others warn about too much leverage and possible legal hurdles. Keep an eye on the $272 support level — if it holds, ZEC could push toward $300; if it breaks below $230, it might trigger a sharp sell-off. Privacy technology continues to balance between innovation and regulatory scrutiny.

What is the latest news about ZEC?

Zcash is gaining attention as privacy becomes a hot topic, even as regulators tighten rules. Here’s the latest update:

1. CEO Promotes “Better Bitcoin” Idea (October 25, 2025) – The CEO of Helius Labs says Zcash delivers the privacy Bitcoin’s creator originally wanted, sparking excitement among developers.
2. Partnership with NymVPN Enhances Privacy (October 24, 2025) – Users can now pay for VPN services using shielded ZEC, combining financial privacy with anonymous internet browsing.
3. EU Considers Ban, US Regulations Ease (October 25, 2025) – Conflicting rules in Europe and the US are pressuring exchanges but also increasing interest in Zcash.

In-Depth Look

1. CEO Promotes “Better Bitcoin” Idea (October 25, 2025)

Summary: Mert Mumtaz, CEO of Helius Labs, sparked discussion by calling Zcash the “encrypted Bitcoin” that Bitcoin’s creator, Satoshi Nakamoto, and early developer Hal Finney wanted but couldn’t build back in 2010. He highlighted that 25% of Zcash’s coins are now in shielded pools, which protect user privacy at a fundamental level. Mumtaz also criticized other privacy solutions as less effective because they are added on later rather than built into the system like Zcash.

Why it matters: This positions Zcash as closely aligned with Bitcoin’s original goals but with stronger privacy features, attracting developers and users interested in privacy. However, Mumtaz’s disagreement with a proposed upgrade to Zcash’s network shows there are still debates about how best to grow and scale the project. (Bitcoinist)

2. Partnership with NymVPN Enhances Privacy (October 24, 2025)

Summary: Zcash teamed up with NymVPN to allow users to pay for VPN subscriptions using shielded ZEC transactions. This setup uses advanced cryptographic tools (zk-Nym credentials and the Coconut protocol) to keep both the payment and the user’s internet activity private.

Why it matters: This partnership combines financial privacy (through Zcash’s shielded transactions) with network privacy (through NymVPN’s anonymous browsing), appealing to users who want complete anonymity online. Early results show more people are using shielded ZEC since the launch, though some wallet compatibility issues remain. (CoinJournal)

3. EU Considers Ban, US Regulations Ease (October 25, 2025)

Summary: The European Union plans to ban privacy coins like Zcash by 2027, which has already led some exchanges, like OKX, to stop listing ZEC in 2024. Meanwhile, U.S. exchanges are benefiting from more relaxed regulations dating back to the Trump administration. The launch of Grayscale’s Zcash Trust on October 1 has made it easier for institutional investors to access Zcash despite regulatory uncertainties.

Why it matters: These differing policies create opportunities for traders to take advantage of price differences between regions but also split the market and reduce liquidity. The number of shielded ZEC coins has grown to 4.5 million, suggesting users are increasing privacy protections ahead of the EU ban. However, long-term growth depends on whether exchanges continue to support Zcash. (Yahoo Finance)

Conclusion

Zcash is growing by promoting itself as the “encrypted Bitcoin” and improving its privacy features, but it faces increasing regulatory challenges. While U.S. institutions are showing more interest, the EU’s upcoming ban could limit Zcash’s reach. The big question remains: Will Zcash’s privacy features keep attracting users despite regulatory pressure, or will compliance rules force it to compromise its core strengths?

What is expected in the development of ZEC?

Zcash’s upcoming plans focus on improving its technology, deciding how to fund development, and expanding privacy features across different blockchains.

1. Third Halving (November 2025) – Mining rewards will be cut in half to 1.5625 ZEC per block, reducing the supply.
2. Development Fund Vote (November 2025) – The community will vote on how to fund future development after the current fund ends.
3. Zebra Node Migration (2025–2026) – Moving to a new, more efficient software client built with Rust to support growth.
4. Cross-Chain Privacy Expansions (Ongoing) – Enabling private ZEC transactions across other blockchains like Bitcoin and Ethereum through new tools.

Deep Dive

1. Third Halving (November 2025)

What’s happening: Zcash will reduce the amount of new ZEC miners earn by 50%, from 3.125 to 1.5625 ZEC per block. This is similar to Bitcoin’s approach to limit supply over time. This halving happens as the current development fund expires, which could tighten the supply further.
Why it matters: This reduction can make ZEC more scarce and potentially more valuable. However, it might also reduce miners’ income, which could affect the network’s security if some miners stop participating.

2. Development Fund Vote (November 2025)

What’s happening: The Zcash community will vote on six different proposals to replace the current development fund. Right now, 20% of mining rewards go toward supporting development and grants (Zcash Foundation).
Why it matters: If the community rejects all proposals, funding for development could dry up, slowing progress. Choosing a new funding model could help ensure Zcash continues to grow and improve.

3. Zebra Node Migration (2025–2026)

What’s happening: Zcash plans to replace its old software client (called “zcashd,” written in C++) with a new client called Zebra, built in Rust. This change aims to make the network more efficient and ready for future upgrades, like possibly switching to proof-of-stake.
Why it matters: This update could improve decentralization and network performance. However, it depends on users and miners adopting the new software smoothly to avoid splitting the network.

4. Cross-Chain Privacy Expansions (Ongoing)

What’s happening: New tools like Zashi CrossPay and Router Protocol allow ZEC to be privately swapped across different blockchains such as Bitcoin and Ethereum, using advanced cryptography called zero-knowledge proofs (Router Protocol).
Why it matters: This makes ZEC more useful in decentralized finance (DeFi) by enabling private transactions across multiple platforms. Still, privacy features may attract regulatory attention, which could create challenges.

Conclusion

Zcash’s roadmap carefully balances reducing supply, deciding on future funding, and upgrading technology to maintain its position as a leading privacy-focused cryptocurrency. How these factors play out will influence ZEC’s value and adoption. The key questions remain: will privacy-friendly regulations support growth, or will regulatory pressures and exchange delistings limit its reach?

What updates are there in the ZEC code base?

Zcash’s recent updates focus on improving privacy, updating software, and enabling cross-chain transactions.

1. Zcashd Deprecation (April 2025) – The old node software will be phased out, replaced by newer tools called Zebra and Zallet.
2. NU6.1 Activation (August 2025) – A testnet upgrade improves transaction speed and fixes bugs in privacy features.
3. Zashi Wallet 2.0.3 (May 2025) – The wallet now supports better private addresses and allows swapping Zcash with other blockchains like Bitcoin and Ethereum.

Deep Dive

1. Zcashd Deprecation (April 2025)

What’s happening: The Electric Coin Company is retiring zcashd, the original software that runs Zcash nodes, and moving to newer software called zebrad (written in Rust) and a new wallet called Zallet.

This means some old commands used to check balances and network stats will stop working, and users running nodes need to switch to the new software. A special setting confirms users know about this change.

Why it matters: This update modernizes Zcash’s technology, making it easier to maintain and scale. However, node operators will need to adjust, which might slow down some activity temporarily.
(Source)

2. NU6.1 Activation (August 2025)

What’s happening: A network upgrade on the testnet introduces improvements that make transactions more efficient and fixes bugs in the privacy features, especially in the “Orchard” shielded pool.

The default transaction format changes to a newer version (v5), which reduces the data size for private transactions.

Why it matters: These fixes improve the reliability and privacy of Zcash transactions. Once tested, this upgrade will be rolled out on the main network, making shielded transactions smoother and more secure.
(Source)

3. Zashi Wallet 2.0.3 (May 2025)

What’s happening: The Zashi wallet update makes managing private addresses easier and adds the ability to swap Zcash privately with other blockchains like Bitcoin and Ethereum using NEAR Intents technology.

The wallet also got a user-friendly redesign, improving navigation and onboarding. Since launch, users have completed over $9.5 million in private swaps.

Why it matters: This update makes Zcash’s privacy features more accessible and expands its use across different blockchain networks. This could attract more users interested in private, cross-chain decentralized finance (DeFi) activities.
(Source)

Conclusion

Zcash is focusing on strengthening privacy, updating its infrastructure, and enabling cross-chain functionality. While retiring zcashd requires users to adapt, upgrades like NU6.1 and Zashi Wallet 2.0.3 enhance Zcash’s privacy and usability. How will the move to Zebra and Zallet affect developer engagement ahead of the 2025 halving?

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