Zcash in focus: Rally may be a trap

A news-driven rally and fresh capital inflows

Zcash’s growth did not occur in isolation but coincided with a broader crypto market recovery. The trigger was U.S. President Donald Trump’s announcement of a two-week ceasefire with Iran. Against this backdrop, investors returned to risk assets, including cryptocurrencies, with ZEC emerging among the top gainers.

Within 24 hours, the coin rose by more than 30%, briefly surpassing $330 — its highest level since the beginning of the year. Trading volume also jumped by over 130%, exceeding $1 billion. This suggests that not only retail traders but also крупные players entered the asset.

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An additional driver came from news about institutional mining. Foundry Digital, which controls around 30% of Bitcoin’s hash rate, is preparing to launch a Zcash mining pool. This will be the first large-scale infrastructure in the U.S. compliant with KYC and AML requirements. Previously, ZEC mining was largely concentrated in Asian pools such as ViaBTC and F2Pool, limiting participation from major companies.

In practice, this means that public mining firms and funds can now enter Zcash without regulatory risks. For example, a U.S.-based miner will be able to officially mine ZEC through a regulated pool, receive transparent payouts, and report to investors.

How the project is changing

Alongside the price surge, significant changes are taking place within Zcash itself. The development team has effectively restructured governance: following a conflict with the Bootstrap fund, the Electric Coin Company left and established a new independent organization — Zcash Open Development Lab (ZODL), which is now responsible for protocol development.

For users, these changes are already visible. The official wallet Zashi is undergoing rebranding and will be renamed Zodl. At the same time, Zcash is increasingly moving toward the institutional market. For instance, Grayscale already manages a ZEC-based trust and is considering launching an ETF. In addition, major players — including entities linked to the Winklevoss brothers — have shown interest in the asset.

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Another signal came from Digital Currency Group. Its CEO Barry Silbert stated that he sees privacy as the “main theme” of the crypto market and named Zcash as one of the assets with potential for tens or even hundreds of times growth. According to him, 5–10% of capital could shift from Bitcoin into privacy coins in the coming years.

The reason is that Bitcoin is no longer perceived as fully anonymous. Services like Chainalysis can track transactions, which is changing investor behavior. Against this backdrop, Zcash offers a compromise: transactions can be either transparent (for exchanges and reporting) or fully shielded.

Risk of a sharp pullback

Although Zcash has posted strong gains, this does not guarantee that the rally will continue, Cointelegraph notes. Some analysts compare the current situation to 2021, when the coin also surged rapidly, attracted market attention, and then entered a prolonged decline. As a result, some market participants fear a repeat of that scenario.

If the rally continues, the price could rise further — potentially toward $370. However, if momentum weakens, Zcash could quickly retrace. In that case, the price may fall back toward the $200 level.

There is also another warning signal: too many market participants are now betting on further upside. When positioning becomes overcrowded, markets often move in the opposite direction. In Zcash’s case, this is especially important, as a decline could trigger a cascade of sell-offs, making the drop much faster than the initial rise.

High potential, but high uncertainty

Overall, the situation around Zcash remains mixed. On one hand, there are solid drivers for growth — from news and capital inflows to internal changes and institutional interest. On the other hand, the nature of this move raises questions, as sharp spikes often end in corrections.

For investors, the takeaway is simple: ZEC remains an asset with high potential, but also high risk. If the rally sustains and consolidates, the coin could enter a new cycle. But if history repeats itself, the current surge may turn out to be just a temporary move before another downturn.

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