Zcash Rally Gains Steam, Can ZEC’s 4.5M Shielded Supply Push It Back Into the Top 20?

James Halver

Last Updated: October 31, 2025 4:00 am

3 mins read

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Zcash (ZEC) is stealing the spotlight once again. The privacy-focused asset has surged more than 50% in the past week, climbing above $350 and fueling talk of a potential return to the top 20 digital assets by market capitalization.

Behind this rally lies a mix of technical strength, institutional catalysts, and renewed global demand for digital privacy.

ZEC's price trends to the upside with recent small losses on the daily chart. Source: ZECUSD on Tradingview

Zcash’s Shielded Supply Hits 4.5 Million

Supporting Zcash’s resurgence is a major milestone. 4.5 million ZEC are now stored in shielded addresses, representing roughly 28% of total supply.

These shielded pools leverage Zcash’s zero-knowledge proof technology (zk-SNARKs), allowing users to transact privately without revealing sender, receiver, or transaction amounts.

This rise in shielded coins signals growing trust in ZEC’s privacy infrastructure, especially as wallets and exchanges improve support for shielded transactions. The move also expands Zcash’s overall anonymity set, strengthening privacy for all participants while tightening on-chain liquidity.

As one of the oldest and most advanced privacy blockchains, ZEC’s growth in shielded adoption reinforces its core mission of financial confidentiality in an increasingly monitored digital world.

Technical Indicators Point to More Upside

Zcash’s market momentum remains robust. Daily trading volume soared above $730 million, while the RSI at 71.8 and a bullish MACD crossover suggest strong buying pressure.

The token’s structure continues to make higher highs and higher lows, indicating a healthy uptrend. Analysts see resistance near $370–$400, with a potential breakout opening the path toward $450–$500 in the coming weeks.

ZEC’s recent surge also coincides with Arthur Hayes’ bold prediction that the coin could reach $1,000, as the market rotates into privacy-focused assets.

With Grayscale’s Zcash Trust surpassing $137 million in assets under management, and whispers of a possible ETF conversion, institutional exposure could further amplify this rally.

Privacy Tokens Regain Spotlight Amid Regulatory Uncertainty

Zcash’s resurgence reflects a broader renewal of interest in privacy tokens like Monero (XMR) amid heightened surveillance and KYC mandates in global markets. As governments tighten oversight, traders and institutions are rediscovering ZEC’s unique role as a bridge between compliant infrastructure and privacy rights.

If Zcash sustains its current momentum, maintains its 4.5M shielded supply growth, and breaks the $400 ceiling, a return to the top 20 cryptos by market cap could soon become reality, supporting ZEC’s comeback as the flagship privacy asset of this cycle.

Cover image from ChatGPT, ZECUSD chart from Tradingview

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