Zcash's price exceeded $1000 for the first time since 2018, driven by market recovery and the launch of a new ETF by Grayscale.
On September 4, Zcash (ZEC) reached a notable milestone, briefly trading above $1000, the highest price seen since 2018. The cryptocurrency experienced a daily increase of around 20.75%, with its current trading price at $1002.
At this valuation, Zcash's market capitalization stands at approximately $16.9 billion, positioning it as the tenth largest cryptocurrency by market cap.
This surge in Zcash’s price aligns with a broader recovery in the cryptocurrency market. Bitcoin approached the $82,000 mark, and Ethereum surpassed $2500 on the same day. Zcash notably outperformed other privacy coins, recording a daily increase of 15.02%.
Trading activity in Zcash derivatives has also surged, with daily futures trading volumes surpassing $8 billion, significantly higher than the $694 million seen in the spot market. Furthermore, open interest in ZEC futures reached $2.3 billion.
Launch of Zcash ETF by Grayscale
A key factor contributing to Zcash's recent price rally is the launch of a new exchange-traded product by Grayscale. The Zcash ETF, trading under the ticker ZCSH, commenced on NYSE Arca on August 25.
"The Zcash ETF - Built by Grayscale (Ticker: $ZCSH) begins trading today @ZcashETF. The world’s first Zcash ETF offering exposure to $ZEC, now accessible from brokerage or investment accounts," Grayscale announced.
This ETF is notable as it is the first dedicated solely to Zcash in the U.S., with ZCSH assets reported at $414.7 million, holding 428,613 ZEC as of September 3.
Grayscale has further emphasized its investment perspective on privacy, suggesting that the rise of artificial intelligence may boost the demand for financial privacy tools. Analysts from the firm stated, "Privacy is not a niche feature of money, but rather a fundamental aspect that enables it to function."
High Activity in Zcash Pools
As Zcash's price continues to rise, the volume of coins within its privacy infrastructure remains significant. As of September 4, around 4.86 million ZEC, or 28.8% of the total supply of approximately 16.91 million ZEC, is held in four protected pools, with a net inflow of about 57,000 ZEC over the past week.
Zcash employs zero-knowledge proofs for fully shielded transactions, which obscure the sender, recipient, and transaction amount. While it offers various transaction types, not all transactions maintain complete anonymity.
Recent advancements include the introduction of a library by the Zakura team, which reduces the preparation time for private transactions from over three seconds to under 200 milliseconds in specific cases.
Earlier this year, Zcash experienced a significant price drop after a critical vulnerability was discovered in its Orchard shielded pool. Following a swift fix and the introduction of a new shielded pool, Zcash has since stabilized. Furthermore, Cypherpunk Technologies recently launched a mining division, estimating it would contribute around 18% of the Zcash network's hash rate.
