Zcash's Q3 Surge: Spot-Driven Gains Amid Regulatory Headwinds

The token has also become increasingly useful. For example, via Zashi CrossPay, a tool that allows ZEC holders to send private payments across other blockchains like Bitcoin, Ethereum, and stablecoins. Partnerships with Maya Protocol and NEAR also make it possible to swap ZEC more easily into other digital assets. 

At the same time, regulatory headwinds are mounting: the EU’s Anti-Money Laundering Regulation (AMLR) will ban privacy tokens by 2027, with many exchanges expected to delist ZEC in anticipation.

September surge drives quarterly gains

Despite this backdrop, the asset staged a sharp rebound in Q3, rising 68% to a high of $69.50. Gains were heavily concentrated in September, where ZEC surged 60% from a monthly opening price of $40.42.

Yet derivatives positioning has not tracked the price move. Futures open interest is steady at $17 million, its second-highest Q3 level after peaking at $18.23 million on 9 July. Funding rates remain flat at 0.05% annualized, underscoring muted leverage.

(Source: Coinmetrics)

Meanwhile, ZEC’s MVRV ratio stands at 0.918, down from 1.15 in 2024. With the metric below 1, most holders remain at an unrealized loss, a condition that can trigger profit-taking if prices recover toward breakeven for underwater investors.

Revenue spikes driven by concentrated users

On-chain activity shows mixed signals. Median transaction fees spiked on three occasions in 2025, $12 in March, $23 in June, and $29 in September, without clear triggers, suggesting short-lived bursts in demand for network usage. Rolling monthly active addresses average about 1.9k, modestly higher than the roughly 1.6k at the start of Q3 but still far below the 2018 peak, highlighting limited user growth.

Protocol revenues highlight concentrated usage. July 2024 saw a record $11.8 million in monthly fees, followed by $6 million in January 2025. Recent readings have normalized near $1 million, still elevated relative to prior years. This indicates that while existing users are generating significant activity, the growth is not being driven by a wider user base. As a result, revenue appears volatile and dependent on a small, stable cohort rather than broadening network adoption.

(Source: Token Terminal, Coinmetrics)

Largely spot-driven

Overall, the data suggests that Zcash remains largely spot-driven, with subdued derivatives activity and on-chain participation concentrated among a relatively stable core of users. Short-term fee volatility signals bursts of demand, but structural network engagement continues to lag historic highs. With regulation looming and potential profit-taking from underwater holders, investors would do well to exercise caution.