Key Insights:
- Zcash crypto climbed about 45% in a week and 140% over the month, briefly entering the top 10 by market capitalisation.
- ZEC price reached $1,249, its highest level since 2016, before pulling back towards $1,145.
- The rally has been driven by ETF demand, the Ironwood upgrade, short liquidations, and renewed interest in privacy.
Zcash crypto rally has become one of the strongest moves in the market, with the ZEC price reaching $1,249 before giving up some of its gains. At the time of writing, market data show that ZEC was trading around $1,145.45, down 3.7% over 24 hours.
Zcash Crypto Rally Pushes ZEC Price Toward $1,200
The move becomes more notable across longer timeframes. Zcash (ZEC) crypto price had gained around 45% in one week and 140% in one month. Its market capitalisation also briefly moved into the top 10, reaching about $19.31 billion. Daily trading volume stood at roughly $1.06 billion.
However, the sharp rise has also brought questions about what is really behind the move. The latest rally is not being linked to one event alone. Instead, several factors have arrived at almost the same time. The biggest change came from the US market, where Grayscale converted its Zcash Trust into ZCSH, described in the supplied material as the first US spot ZEC ETF.
The fund launched on NYSE Arca on August 25 and reportedly reached close to $463 million in assets within about two weeks. Notably, that has given investors a regulated way to gain exposure to Zcash crypto. With Zcash limited to a maximum supply of 21 million coins, the combination of new demand and limited supply has helped push the ZEC price higher.
Meanwhile, the price targets and levels presented are based on technical analysis and do not constitute guarantees of future market performance. The article is only for informational purposes and not financial advice.
Cryptocurrency markets are highly volatile, and readers should independently research any investment opportunity or consult a qualified financial professional before making investment decisions.
F2Pool Founder Questions The Zcash Rally Narrative
F2Pool founder Chun Wang has taken a more critical view of the move, calling the latest rally a “narrative bid”. The argument is that a rising market value does not automatically mean that Zcash has earned the same position as networks such as Solana or Hyperliquid.
The criticism also points back to how Zcash was launched. During its first four years, 20% of each block reward went to the Founders’ Reward. According to the supplied material, this amounted to about 2.1 million ZEC, equal to 10% of the eventual 21 million supply.
A similar 20% allocation later returned through a development fund. For critics, that raises questions about how the network handled its early rewards and who benefited from them.
The F2Pool founder also questioned Zcash’s approach to privacy. Privacy transactions were available, but users did not have to use them. Open addresses remained easier for exchanges and some wallets, meaning privacy was not always the default experience.
Can ZEC Price Rally Be Called A Pump And Dump?
Calling the move a simple pump and dump may also miss what has happened. The ZEC price has received several forms of support at once.
The May security problem was one of the biggest turning points. A bug in the shielded pool had reportedly existed for about four years and created a theoretical risk of hidden ZEC being created without a clear on-chain record. The market reacted sharply, with the price falling by roughly half.
The Ironwood upgrade in July then closed the legacy pool and required coins to pass through a public turnstile, making the total supply easier to audit. It also introduced quantum recoverable notes.
At the same time, futures positioning added fuel to the recovery. Perpetual open interest reportedly reached about $2.8 billion, with traders still heavily positioned short after the May decline. When ZEC moved above $1,000, tens of millions of dollars in short positions were liquidated, adding further buying pressure.
Still, the Zcash crypto rally is now stretched. ZEC has risen more than 100% in a month, while RSI has moved into the high 70s. That does not prove that a fall is coming, but it shows how quickly the market has moved.
