Zcash (ZEC) surged past $1,200 on Sunday, reaching an intraday peak of $1,249, its highest level since the fourth quarter of 2016. The privacy coin delivered a weekly gain of over 45% and quickly reclaimed the $1,200 mark following a brief selloff.
The rally lifted ZEC's market capitalization to $20.44 billion, displacing HYPE as the ninth-largest digital asset by market cap. Since July 4, 2024, when ZEC traded at $16.08, the coin has risen approximately 7,400%. Year-to-date gains stand at 134%, making it one of the best-performing high-cap altcoins. However, ZEC remains more than 62% below its October 16, 2016 peak of $3,191.93.
Derivatives Liquidations and Network Activity
Zcash's price movement triggered $24 million in leveraged position liquidations over the preceding 24 hours, the third-highest on a single asset behind ethereum and bitcoin. Short liquidations accounted for $17.5 million of the total.
The surge also drove significant mining activity, with the Zcash network solrate briefly exceeding 30 gigasols per second (GSol/s) for the first time. The influx of mining hardware resulted in individual miner revenue roughly 3% lower than when ZEC traded below $900.
Institutional Access and Market Drivers
Grayscale's launch of a Zcash ETF (ZCSH) has introduced new dynamics for the privacy coin. Previous regulatory pressure forced several centralized exchanges to delist ZEC, limiting mainstream investor access, particularly in the United States. The ETF provides a mainstream vehicle for speculative investment and has driven recent fund inflows.
The rally reflects bullish commentary from high-profile figures including BitMEX co-founder Arthur Hayes and Bitwise CEO Hunter Horsley. Some analysts attribute the broader move to structural market demand for privacy-focused cryptocurrencies and zero-knowledge protocols, positioning these assets as hedges against future technological developments.
