Why Is Zcash Rallying Today? Privacy Coins Are Up 90% in a Month and Monero Just Added 13%
Zcash has tripled in value this year while Bitcoin managed a modest 10% gain over the same month, and the forces behind that gap reveal something brewing in the privacy coin sector that most investors have not priced in yet.
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Zcash (CRYPTO:ZEC) trades at $1,505, after a 4.5% rise in 24 hours and an impressive 90% gain in the past month. Year-to-date, Zcash has roughly tripled in value, up about 200%. Its all-time high is around $5,942 from October 2016, according to CoinGecko. While this recent surge isn’t anywhere near its record high, it stands out compared to Bitcoin’s 10% gain during the same month.
Today, most major cryptocurrencies are gaining, driven by a drop in oil prices and short-seller squeezes as Bitcoin surpassed $84,000. Zcash’s 4.5% increase aligns with the broader market trend, but what has contributed to its remarkable 90% rise over the past month?
Paradigm Endorsed Zcash as a Private Complement to Bitcoin on September 16
On September 16, Matt Huang, co-founder of the venture firm Paradigm, announced that the firm holds ZEC and has invested in the Zcash Open Development Lab. He referred to Zcash as “a private complement to Bitcoin.” Following this endorsement, Zcash closed at $1,337, then jumped about 10% to $1,466 the next day and hit $1,566 by September 19, reaching a high of $1,581.
This price surge was influenced by Paradigm’s reputation. Being one of the largest crypto venture funds, any public endorsement from them prompts other funds to reevaluate their stance. However, Huang didn’t disclose how much ZEC Paradigm holds, leading buyers to speculate rather than act on confirmed allocations.
Zcash Holders Voted 99.9% to Speed Up Transactions, but the Upgrade Has No Date
Another significant factor is a recent vote among Zcash holders, where 99.9% voted to reduce the block time from 75 seconds to just 25 seconds. This change means payments would be confirmed about three times faster. Additionally, 98.9% of voters chose to keep the existing issuance schedule unchanged. With around 2.4 million ZEC, worth $3.6 billion at today’s rates, participating in the vote, this outcome gives holders a reason to remain optimistic during this rally.
However, it’s essential to note that voting represents a proposal rather than an immediate upgrade. Developers aim to finalize the details by September 30, but no activation date has been set yet. Buyers are currently investing in Zcash while its next improvement is still in the planning stages.
Monero Rose 13% Today, So the Privacy Coin Sector Is Moving Together
Zcash’s rise is echoed by Monero (CRYPTO:XMR), the second-largest privacy coin, which gained 13% in the same timeframe. Over the past 30 days, privacy coins as a whole have risen by 90%, according to data from Glassnode.
Privacy coins like Zcash and Monero offer transaction anonymity, masking the sender, receiver, and amount. This shared interest in privacy has contributed to a sector-wide increase, with Monero’s 13% gain on the same day Zcash rose 4.5%, suggesting that investors are collectively interested in this niche.
Zcash’s price movements are particularly pronounced due to a couple of reasons. Grayscale launched its Zcash Trust ETF on August 25, which has attracted over $500 million, while Zcash has not achieved the mainstream adoption Bitcoin has. With a market capitalization of $25.5 billion, Zcash is a fraction of Bitcoin’s $1.7 trillion market cap, so any buying activity can have a bigger impact on its price.
Can the Zcash Price Hold Above $1,500?
Zcash’s price surge today is partly due to the broader market rally and a 90% monthly increase driven by Paradigm’s endorsement, holders’ vote for faster transactions, and rising investment in privacy coins.
To maintain its price above $1,500, Zcash must continue attracting new buyers. A close above the September 19 high of $1,581 (about 5% away) could signal that fresh capital is entering the market.
Conversely, a drop below the September 17 close of $1,466 (about 3% below) may indicate the spike triggered by Paradigm is losing momentum. If the September 30 deadline for the proposed upgrade is delayed, it could further affect Zcash’s market position.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
