Headline: Zcash rallies but flashes mixed signals — privacy coins steal Q4 spotlight
Zcash (ZEC) was one of the standout stories of late 2025 — but its surge came with sharp whipsaws that left traders divided about what comes next.
Privacy tokens dominated the fourth quarter, according to asset manager Grayscale. Of the top 20 performers in Q4, privacy-focused coins such as ZEC, Monero (XMR) and Dash (DASH) led the pack. Grayscale also noted that these tokens “dominated in mindshare,” suggesting that narrative momentum — not just fundamentals — helped fuel the rally. The firm pointed to rising usage across privacy networks, including Zcash and Dash, as part of the story. (Source: Grayscale)
Performance snapshot (Q4)
- ZEC: +600%+
- DASH: +218%
- XMR: +48%
A spectacular, volatile run
ZEC’s rise was dramatic but uneven. The coin exploded more than 1,000% in October, briefly tagging an all-time high of $751, then plunged roughly 50% to about $320 by early December. At press time it had recovered some ground and traded near $539 — still roughly 35% below its ATH. (Source: ZEC/USDT, TradingView)
Can ZEC double to $1,000?
Bullish narratives point to a potential supply squeeze. Pseudonymous analyst Anonymist argued that out of Zcash’s roughly 16 million circulating coins, about 5 million are “shielded” — held in privacy-protected addresses and therefore less likely to be available for trading. That leaves about 10 million potentially tradable today; Anonymist projects tradable supply could tighten to 8–9 million as price rises, making a $1,000 level reachable ahead of supply pressure. (Source: X/Anonymist)
But market signals are mixed:
- Prediction markets: Polymarket was pricing about a 30% chance that ZEC would reach $1,000.
- Derivatives activity: CoinGlass data showed roughly 70% of Binance’s top traders were shorting ZEC, reflecting significant bearish positioning.
- On the flip side, growing spot-market accumulation could underpin further recovery if buying continues.
Broader view
Notable crypto investors and firms — including partners at a16z — have highlighted privacy as a critical competitive moat for crypto projects. If the privacy narrative persists into 2026, it could help extend gains for ZEC and peers. Yet the token’s extreme volatility and mixed trader sentiment underscore that any upside will likely remain contested.
This article summarizes market observations and public commentary and is for informational purposes only. It is not investment advice. Trading cryptocurrencies carries high risk; readers should conduct their own research before making decisions. © 2025 AMBCrypto
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