Zcash's Rise in Privacy Poses New Hurdles for Global Regulation

Zcash (ZEC) has jumped by more than 50% over the last week, climbing above $350 as renewed enthusiasm for privacy-centric cryptocurrencies sparks speculation about its chances of returning to the top 20 by market cap, according to a

. This surge comes as the network hits a significant milestone: 4.5 million , representing 28% of all coins, are now held in shielded wallets that use zero-knowledge proofs (zk-SNARKs) to hide transaction information like sender, recipient, and amount—a detail also emphasized in the TradingView report. The growing use of shielded addresses highlights a wider revival in demand for privacy in finance, especially as global regulatory oversight increases, according to a .

Strong technical signals are also driving the privacy coin’s rally. Daily trading volumes have surpassed $730 million, and the Relative Strength Index (RSI) is approaching the overbought zone at 71.8, a trend previously noted by TradingView. A bullish MACD crossover on the 4-hour timeframe and consistent trading above key moving averages—like the 200-period EMA at $223—support the ongoing upward momentum, as outlined in an

. Experts point to resistance between $370 and $400, with a breakout possibly paving the way to $450–$500, according to TradingView. Meanwhile, futures open interest (OI) remains high at $518 million, indicating continued trader optimism, though a negative OI-weighted funding rate of -0.0566% suggests some caution as traders take profits, per FXStreet.

Institutional interest is also adding to the positive outlook. Grayscale's

Trust now oversees more than $137 million in assets, signaling increased confidence from institutional investors, according to TradingView. Rumors of a possible ETF conversion could further boost inflows, echoing Bitcoin’s path toward institutional adoption. Additionally, former BitMEX CEO Arthur Hayes has forecasted that ZEC could reach $1,000 in this cycle, positioning privacy coins as a prime target for market rotation, as previously reported.

The renewed momentum for Zcash mirrors a larger trend in the crypto sector. As authorities ramp up KYC and AML requirements, privacy coins like Monero (XMR) and Zcash are becoming more popular as tools to balance regulatory compliance with user privacy, according to the Bitrue blog. Zcash’s distinctive dual-address system—which allows both transparent and shielded transactions—gives users the option to selectively reveal transaction details through view keys, as detailed in an

. This adaptability has enabled Zcash to better navigate regulatory hurdles compared to fully private networks, though some privacy advocates still prefer Monero’s enforced anonymity, the XT.com report added.

Zcash’s technical advancements are also noteworthy. Recent protocol improvements like Halo 2 and Orchard have removed the need for a “trusted setup” in zk-SNARKs, boosting both scalability and security, according to XT.com. These upgrades position Zcash as a key infrastructure for private DeFi and cross-chain privacy applications, aligning with Web3’s increasing focus on data ownership. However, the project still needs to address lingering doubts about its performance and the uneven adoption of shielded features to fully realize its promise, the XT.com analysis observed.

As Zcash approaches a potential breakout above $400, market watchers are paying close attention to whether it can maintain growth in shielded supply and attract more institutional interest. If these trends continue, ZEC’s progress could reinforce the lasting importance of privacy-oriented blockchain technology in an age of growing digital surveillance, the Bitrue blog concluded.