Zcash (ZEC) has reached a market capitalization of $20 billion, surpassing several major altcoins. The token briefly exceeded $1,200 earlier this week for the first time in almost 10 years, representing a 370% increase since early June lows.
From Crisis to Recovery
The recent surge follows a dramatic reversal from earlier this year. In June, a vulnerability was disclosed in Zcash's Orchard privacy pool that could have allowed hackers to create fake ZEC without immediate detection. Although the vulnerability was patched before public disclosure, the announcement triggered significant selling pressure, with the asset tumbling 60% in a single day from $650 to $260.
The token subsequently stabilized around $500 over the following weeks. A major rally began on August 19 during a broader market breakout, pushing ZEC to $900 and eventually higher.
Market Drivers
Recent momentum has been supported by institutional investment flows. Grayscale launched a Zcash ETF on August 25, which attracted $34.4 million in net inflows. The ETF development has drawn attention to ZEC as a digital asset previously overlooked by traditional investment vehicles.
Market data shows that ZEC's 24-hour surge resulted in $46 million in short liquidations, the highest among all cryptocurrencies during that period.
Notable On-Chain Activity
A major whale accumulated 22,840 ZEC between 2022 and 2024 for approximately $1.1 million. The position had grown to $23 million by the time the holder transferred the entire amount to Binance, potentially to realize gains.
