Which venues increased ZEC perp volumes?

This week, Binance Futures and Hyperliquid saw the biggest increases in trading volume for Zcash (ZEC) perpetual futures contracts. Decentralized exchange (DEX) perps like Drift Protocol also attracted attention, according to social media updates.

1. ZEC’s global perpetual futures volume reached about $2.9 billion, capturing roughly 7% of the market and ranking third behind Bitcoin (BTC) and Ethereum (ETH). privacy rally update
2. Trading activity and liquidations suggest growing interest in ZEC perps on Binance and Hyperliquid. derivatives positioning note
3. Open interest increased, with most traders holding long positions, signaling more participation in ZEC derivatives. ZEC derivatives snapshot

Deep Dive

1. Global Perpetual Futures Overview

Zcash (ZEC) has moved into the top tier of perpetual futures trading, with global volumes near $2.9 billion and about 7% market share, ranking it third after BTC and ETH. This reflects a broader trend where investors are rotating into “privacy coins.” privacy rally update

• During the week, ZEC surpassed Solana (SOL) in speculative interest, suggesting traders are using perpetual futures to gain privacy-focused exposure as spot market activity tightens. privacy rally update
• A higher share of perp trading often means increased momentum and leverage, which can lead to bigger price swings in either direction.

What this means: Perpetual futures markets have become a key way for traders to express interest in ZEC, making the price more sensitive to funding rates and liquidation events.

2. Activity on Binance and Hyperliquid

Data shows rising ZEC perp trading on Binance and Hyperliquid, including significant short position liquidations and shifts in trader positioning—common signs of growing volume.

1. Short liquidations totaled about $967,260 on Binance and $411,730 on Hyperliquid, indicating active and sometimes volatile trading in these venues. derivatives positioning note
2. Binance perp data shows more accounts holding short positions, consistent with increased turnover and reactive trading behavior. derivatives positioning note
3. Social media highlights growing interest in ZEC exposure through Drift Protocol perps on Solana, drawing traders across different blockchains. social thread

What this means: Both centralized exchanges like Binance and decentralized platforms like Hyperliquid and Drift are seeing more ZEC perp trading. Liquidity and leverage are important factors driving this activity.

3. Trends in Derivatives Positioning

Open interest (the total number of active contracts) and the ratio of long to short positions show more traders are taking long positions in ZEC perps.

• Reports note that open interest increased and the long/short ratio is above 1, indicating growing bullish sentiment alongside higher trading volumes. ZEC derivatives snapshot
• Increased perp trading often happens when spot supply decreases (for example, when coins are withdrawn from exchanges), which can lead to higher price volatility. ZEC derivatives snapshot

What this means: If open interest stays high while spot supply remains limited, price moves can accelerate. It’s important to watch funding rates and liquidation activity on these platforms.

Conclusion

Data points to rising ZEC perpetual futures volumes and trading activity on Binance and Hyperliquid, with decentralized perps like Drift also gaining traction. The growing interest in privacy coins combined with tighter spot supply has boosted derivatives trading, making funding rates and liquidations key factors to watch for short-term price movements.

Confidence level: moderate (exchange activity is backed by credible reports; DEX flow information from Drift is based on social media and should be confirmed with official sources).

What could affect the price of ZEC?

Zcash’s price depends largely on how widely its privacy technology is adopted, changes in regulations, and interest from big investors.

1. Growing Use of Privacy Features (Positive) – About 30% of ZEC is now held in private pools, and demand is increasing.
2. Regulatory Challenges (Mixed) – U.S. and European rules could limit exchanges, but Zcash’s optional privacy helps it stay compliant.
3. Institutional Interest (Positive) – Grayscale’s Zcash Trust holds $137 million, and there are rumors of a Nasdaq ETF listing in 2026.
4. Upcoming Halving (Neutral) – The next supply reduction in February 2028 could make ZEC scarcer if demand stays strong.

In-Depth Analysis

1. Privacy Technology & Adoption (Positive Impact)

Overview:
Zcash uses advanced privacy tech called shielded transactions (zk-SNARKs). In November 2025, there were 139,844 upgrades to the latest privacy protocol, a 285% increase from the previous quarter. Now, 30% of all ZEC coins are in shielded pools, which means fewer coins are freely traded (CoinDesk). Zcash has also integrated with platforms like Solana’s DeFi and Circle’s USDC, allowing private stablecoin exchanges.

What this means:
As more organizations—like nonprofits and international payment services—use Zcash’s privacy features, the supply of freely tradable coins tightens. This could increase ZEC’s value. If shielded pools grow to over 40% by 2026, it might reduce selling pressure and help keep prices between $600 and $800.

2. Regulatory Environment (Mixed Impact)

Overview:
The European Union’s MiCA regulations, set for 2027, might ban cryptocurrencies with default privacy features. However, Zcash’s optional privacy model has already been approved by New York’s financial regulator for use on Gemini exchange. Meanwhile, South Korea’s Financial Intelligence Unit flagged ZEC for stricter anti-money laundering checks in December 2025 (Bitget).

What this means:
Clear U.S. regulations recognizing Zcash could encourage institutional investment. But if European exchanges delist ZEC, retail interest might slow down. Ultimately, Zcash’s success depends on whether regulators see it as a compliant privacy tool or a risk for illicit activity.

3. Institutional Investment (Positive Impact)

Overview:
Cypherpunk Technologies purchased $28 million worth of ZEC in the last quarter of 2025, now holding 1.76% of all coins. Grayscale’s Zcash Trust manages $2.1 billion in assets, and there are rumors about converting it into a spot ETF (CryptoNewsLand).

What this means:
Big investors view Zcash as a “privacy hedge” — a way to protect privacy in their portfolios. Continued buying by institutions could drive a rally similar to Bitcoin’s ETF-driven growth from 2023 to 2025. However, since the top 10 wallets hold nearly 15% of all ZEC, large holders selling could cause price swings.

Conclusion

Zcash’s chance to reach $1,000 or more depends on privacy adoption growing faster than regulatory hurdles, with ETF approval acting as a major boost. Keep an eye on the ZEC/BTC ratio—if it rises above 0.025 BTC (currently 0.017), it could signal a strong period for privacy-focused altcoins. The key question remains: Can Zcash attract over 10 million shielded users before the 2028 halving, or will regulatory pressures weaken its appeal?

What are people saying about ZEC?

Zcash’s privacy features are stirring up strong opinions—some experts predict it could hit $1,000, while others expect a price drop. Here’s a quick summary:

1. More private transactions – About 30% of Zcash (ZEC) is now shielded, boosting optimism.
2. Mixed forecasts – Former BitMEX CEO Arthur Hayes aims for $1,000, but 85% of analysts expect it to stay under $550 in the short term.
3. Big moves by whales – Over $35 million worth of ZEC moved to Binance, hinting at possible price swings.
4. Regulatory concerns – The EU is keeping a close eye on Zcash, despite rumors about a Nasdaq listing.

In-Depth Look

1. Technical Analysis: Key Price Levels to Watch

@earlyadopterz says:
"Breaking above $454 is very bullish and could lead to the next big price jump. Falling below $434 risks dropping to $400."
See original tweet
What this means: Traders are watching the $454 mark closely. If ZEC closes above this price daily, it could push toward $550. But if it falls below $434, the price might slide down to $400.

2. Growing Use of Privacy Features

@cryptodotnews reports:
"The amount of shielded ZEC has quadrupled since September as more institutions seek financial privacy."
See original tweet
What this means: About 4.5 million ZEC (worth roughly $2.3 billion) is now in private transactions. This reduces the number of coins available for trading, which could push prices higher, especially if an ETF (exchange-traded fund) is approved.

3. Warning Signs from Price Drops

@BTC_DailyAlpha notes:
"ZEC dropped 6.1% today after failing to break $419. Momentum turned negative. Holding $400 is crucial; otherwise, it could fall to $368."
See original tweet
What this means: ZEC’s recent price struggles near its yearly high ($744) suggest some investors are cashing out. The $380-$400 range is important to watch for support.

Summary

Zcash’s future depends on its privacy technology gaining traction while navigating regulatory challenges. The rise in shielded transactions and large investor activity show strength, but technical indicators like an overbought RSI (80.58) and skepticism about reaching $550 suggest caution. The price range between $420 and $450 is a key battleground—breaking out above or below this zone could shape ZEC’s path in early 2026.

Will Zcash become the “HTTPS of money,” offering secure and private transactions, or will it face setbacks like other privacy coins? The decision on Grayscale’s ETF in January could be a turning point.

What is the latest news about ZEC?

Zcash walks a fine line between advancing privacy and handling big market moves. Here’s the latest:

1. Research Highlights Privacy Challenges (January 4, 2026) – A study praises Zcash’s privacy but points out issues with scaling and regulations.
2. Privacy Coins Lead in 2025 (January 4, 2026) – ZEC jumped 800% last year as investors favored coins that protect user privacy.
3. Whale Moves $35.75M to Binance (January 3, 2026) – A large holder moved 74,000 ZEC to Binance, testing the market after recent gains.

In-Depth Look

1. Research Highlights Privacy Challenges (January 4, 2026)

Summary: Researchers from Mysten Labs, Yale, and George Mason University examined Zcash’s privacy system, which uses zk-SNARK technology. They praised its strong privacy but noted that no system can fully guarantee both complete anonymity and easy scaling at the same time. For Zcash, handling more users while keeping privacy strong remains a challenge.
What this means: Zcash remains a top privacy-focused cryptocurrency, but developers need to balance privacy with performance. Regulators may increase scrutiny as they seek to limit fully anonymous transactions.
(CoinMarketCap)

2. Privacy Coins Lead in 2025 (January 4, 2026)

Summary: ZEC’s price grew eight times in 2025, outperforming many other cryptocurrencies. This growth came as investors moved away from riskier bets toward coins that protect privacy. Increased regulation on transparent blockchains and global sanctions made privacy coins more attractive.
What this means: The strong performance shows that many investors value privacy and censorship resistance. However, if global surveillance pressures ease, demand for privacy coins could slow down.
(CoinMarketCap)

3. Whale Moves $35.75M to Binance (January 3, 2026)

Summary: A large Zcash holder transferred 74,002 ZEC (worth $35.75 million) to Binance during a period when prices were steady. This didn’t immediately lead to selling but raised questions about possible profit-taking after a 218% gain over 90 days.
What this means: Big investors are still active, which can affect market liquidity and price stability. The timing matched a neutral momentum indicator (14-day RSI at 62.8), suggesting the market is balanced for now.
(CoinMarketCap)

Conclusion

Zcash continues to grow as a privacy-focused cryptocurrency but faces challenges with scaling and market swings caused by large holders. About 30% of ZEC’s supply now uses shielded transactions, and companies like Cypherpunk Technologies are investing heavily. The big question for 2026 is whether Zcash can overcome its technical challenges or if regulators will push back as more people use its privacy features.

What is expected in the development of ZEC?

Zcash is moving forward with some important updates planned for 2026:

1. Ztarknet Layer 2 Launch (Q1 2026) – Introducing privacy-focused smart contracts inspired by Starknet technology.
2. Zashi Wallet 2.0 (Q1 2026) – New features like one-time-use addresses and easier cross-chain swaps.
3. Governance Changes (2026) – Giving the community more control over the $8 million yearly development fund.

In-Depth Look

1. Ztarknet Layer 2 Launch (Q1 2026)

What is it?
Ztarknet is a new technology layer built on top of Zcash that lets developers create smart contracts—programs that run automatically—while keeping transactions private. It uses a method called Circle-STARK proofs to verify actions securely without changing Zcash’s main blockchain rules. Testing started in late 2025, with a wider release expected early next year.

Why it matters:
This upgrade could make Zcash more useful beyond just sending money. Developers might build private finance apps, attracting more users and funds. However, if connecting with other blockchains takes longer than expected, adoption could slow down.

2. Zashi Wallet 2.0 (Q1 2026)

What is it?
The Zashi wallet will get new features like temporary transparent addresses that are used once for safer swaps between coins. It will also support multi-signature security for managing the development fund. Other improvements include automatic privacy protection for big users and better integration with the NEAR blockchain for easier cross-chain transactions (Bitrue).

Why it matters:
Making privacy easier to use could encourage more people to use shielded transactions, which currently cover about 30% of all ZEC. Better wallet features might also attract institutional investors. Still, regulators might keep a close eye on these private transactions.

3. Governance Changes (2026)

What is it?
The Zcash community is working on a plan to let users vote privately on how to spend the $8 million yearly development fund. This comes after discussions in late 2025 about possibly ending the fund altogether. A final decision is expected by mid-2026 (Kanalcoin).

Why it matters:
More transparent and community-driven governance could build trust and improve decision-making. However, disagreements on how to allocate funds—like marketing versus research—might slow progress.

Conclusion

Zcash’s 2026 plans focus on advancing privacy technology with Ztarknet and Zashi while improving how the project is governed. These steps aim to strengthen Zcash’s position as a privacy-focused blockchain that also meets regulatory expectations. The key challenges will be how regulators respond to shielded transactions and whether exchanges continue to support ZEC. Keep an eye on the growth of shielded transactions and any changes in exchange listings.

What updates are there in the ZEC code base?

In late 2025, Zcash made important upgrades to its technology and privacy features.

1. Zebra 3.1.0 Update (December 19, 2025) – Improved support for Docker and better protection against spam transactions.
2. Zcashd Phase-Out Plan (v6.2.0, April 2025) – Moving away from the old Zcashd software to newer Zebra nodes and the Zallet wallet.
3. Orchard Protocol Upgrade (October 2025) – Lowered fees for private transactions by 30%.

Detailed Overview

1. Zebra 3.1.0 Update (December 19, 2025)

What happened: The Zcash Foundation released Zebra 3.1.0, a new version of their node software written in Rust. This update improved how Zebra works with Docker (a tool that helps run software in different environments) and added better defenses against spam transactions.

• The Docker setup was upgraded to Debian Trixie, fixing issues with ARM processors like those in Apple Silicon devices.
• A new filter was added to block “dust” transactions, which are tiny payments often used to clog the network.
  Why it matters: These changes make the Zcash network more reliable and secure, helping protect it from spam attacks. This is good news for Zcash (ZEC). (Source)

2. Zcashd Phase-Out Plan (v6.2.0, April 2025)

What happened: The older Zcashd software, written in C++, is being retired. Users and developers are encouraged to switch to Zebra nodes and the Zallet wallet.

• Some older commands like keypoolrefill and signrawtransaction were removed.
• To keep using the network smoothly, users need to move to the new software by the end of 2025.
  Why it matters: This update modernizes Zcash’s infrastructure but requires users and developers to adapt. It’s a neutral change overall. (Source)

3. Orchard Protocol Upgrade (October 2025)

What happened: The network upgrade in October lowered fees for shielded (private) transactions by 30%.

• This was made possible by using Halo 2 zero-knowledge proofs, which remove the need for trusted setups in Orchard transactions.
• The upgrade also added support for private smart contracts through integration with Layer-2 Ztarknet.
  Why it matters: Lower fees and better scalability encourage more users to make private transactions, which is positive for Zcash (ZEC). (Source)

Conclusion

Zcash’s upgrades in late 2025 focus on modernizing its technology (with Zebra), reducing transaction costs (with Orchard), and protecting the network from spam. These improvements support Zcash’s commitment to privacy. With shielded transactions now making up 20–25% of all ZEC, the next big question is how future regulations will influence its growth.

Why did the price of ZEC fall?

Zcash (ZEC) dropped 2.06% in the last 24 hours, underperforming the overall crypto market, which gained 1.03%. This decline seems to be driven by profit-taking after recent price increases and mixed technical signals.

1. Whale activity – A large transfer of $35.75 million worth of ZEC to Binance raised concerns about potential selling pressure.
2. Technical breakdown – The price fell below an important support level at $501, weakening the recent upward trend.
3. Altcoin weakness – Bitcoin’s market share increased as investors moved money away from alternative cryptocurrencies like ZEC.

Deep Dive

1. Whale Liquidation Risk (Bearish Impact)

Overview: A large holder, often called a “whale,” moved 74,002 ZEC (valued at $35.75 million) to the Binance exchange (Lookonchain). This raised concerns that they might sell, which can put downward pressure on the price. Although it’s not confirmed that these coins were sold, such moves often happen after a big price rally—in this case, ZEC’s 217% gain over the past 90 days.
What this means: When large amounts of a cryptocurrency are moved to exchanges, it usually means more coins are available to sell, which can push prices down. This transfer happened as ZEC’s price dropped below a key support level at $501.21, triggering automatic sell orders (stop-losses) from traders.

2. Technical Weakness (Mixed Impact)

Overview: ZEC’s price fell below its 7-day simple moving average (SMA) of $519.39 and the important 23.6% Fibonacci retracement level. The Relative Strength Index (RSI) is at 57.8, indicating neutral momentum, while the MACD histogram (+5.97) shows some bullish signs.
What this means: The break below these support levels suggests short-term weakness in the price trend. However, the 30-day SMA at $442.99 is still holding as a support level, which could limit further losses.
What to watch: If the price closes below $442, it could lead to a deeper correction down to the next support around $468.44.

3. Altcoin Underperformance (Bearish Impact)

Overview: Bitcoin’s dominance in the crypto market rose to 58.51% (CMC), showing that investors are moving money away from altcoins like ZEC. Additionally, ZEC’s 24-hour trading volume dropped by 21.7%, increasing price volatility.
What this means: Despite strong performance in 2025, privacy-focused coins like ZEC are facing challenges as traders prefer Bitcoin during uncertain market conditions. The Fear & Greed Index at 40 reflects a cautious market mood.

Conclusion

Zcash’s recent price drop is mainly due to profit-taking by large holders, technical weaknesses, and a broader decline in altcoin interest. While the mid-term uptrend remains positive with a 39.5% gain over 30 days, traders are approaching the market more cautiously.

Key watch: Will ZEC maintain support at $442, or will whale selling push the price lower? Keep an eye on exchange inflows and Bitcoin’s market dominance for clues on the next move.