Zcash, the privacy-focused cryptocurrency, has surged in recent weeks, climbing from around $76 at the start of October to $356, according to CoinMarketCap data.
The move represents a nearly 30% gain over the past weekend alone and marks one of the strongest rallies among major alternative coins this year.
The rebound follows two key developments. First, asset manager Grayscale made Zcash available to eligible investors through its Grayscale Zcash Trust platform, expanding regulated access to the token. Second, former BitMEX CEO Arthur Hayes posted on X: “Vibe check $ZEC to $10k,” following an earlier supportive post on 2 Oct.
Origins and philosophy
Zcash is among the earliest privacy projects in the crypto industry. It originated in 2013, when scientists at Johns Hopkins University sought to address Bitcoin’s lack of transactional privacy. After failing to integrate privacy extensions directly into Bitcoin, they developed a standalone protocol that became Zcash.
To build the network, they founded the Zerocoin Electric Coin Company, now known as the Electric Coin Company, in 2015. When Zcash launched in October 2016, its price briefly spiked to $4,293, according to CoinMarketCap, before stabilising in the $20–50 range since the middle of 2022.
Zcash was designed to offer users a choice between transparent and shielded transactions, the latter using zero-knowledge proofs to conceal the sender, receiver, and amount. According to the ZecHub dashboard, there are 16.3mn ZEC in circulation, with around 27% (4.5mn coins) held in shielded addresses.
Community and governance
The network has long presented itself as a community-led project. The Zcash Foundation, established in 2017, supports its development, while the Zcash Major Grants organisation, launched in 2020, allocates funding to community projects.
Under its 80:20 issuance split, miners receive 80% of new coins, with the remaining 20% devoted to development. Electric Coin says this model was “ratified and approved – not by the Zcash Foundation or ECC – but by the community.”
In 2021, the company was transferred to the non-profit Bootstrap Project, whose mission is “to uplift humanity through technology, scientific discovery, education and human organisation.”
Criticism and comparison
Zcash and Monero remain the two leading privacy coins. Monero’s transactions are private by default, whereas Zcash users must opt in to shielded mode. Critics argue that privacy coins enable illicit activity, including the purchase of illegal goods and services.
Zcash also faces scrutiny over centralisation and limited adoption of privacy. A 2022 academic study found that only 0.9% of all ZEC transactions are fully shielded, meaning the sender, receiver, and amount are all hidden.
A rising tide?
Monero’s price has also risen in October, up 16%, though it remains larger by both market capitalisation and circulating supply.
Whether Zcash’s recent rally signals a broader revival of privacy coins or merely another speculative burst remains to be seen. But in an era of growing surveillance and tightening regulation, the renewed interest suggests financial privacy may be coming of age.
