Zcash is back in the headlines after a sharp run-up that’s catching the attention of traders and institutions alike. ZEC is trading around $537.45, up about 3.0% in 24 hours and a striking 28.5% over the past week, as a mix of supply dynamics, whale activity and renewed demand for privacy-focused assets push liquidity lower and prices higher.
What’s driving the rally
- Whale accumulation: The top 100 ZEC addresses now control roughly 66% of the supply. Large withdrawals from exchanges — including more than $31 million worth of ZEC taken off Binance — have shifted coins off-exchange and out of easy circulation.
- Shielded adoption: On-chain privacy features are being used more: roughly 30% of ZEC is held in shielded addresses, and shielded transactions now represent about 27% of total supply. That reduces the float available to traders and intensifies a classic supply squeeze.
- Institutional interest: Grayscale’s reports show Zcash was among the best-performing assets in Q4 2025, with ZEC up nearly 900% since October, highlighting growing institutional appetite for privacy plays as regulatory and KYC/AML pressures mount.
Technical and derivatives picture
- Bullish momentum: ZEC recently cleared the $500 resistance level. Momentum indicators such as MACD and RSI are signaling continued upward potential.
- Futures activity: Open interest is rising and funding rates point to moderate leverage — a bullish sign but also one that raises volatility risk. There’s about $78 million in potential long liquidations on the table, meaning a short-term pullback to around $476 is possible if leveraged positions unwind.
- Key levels to watch: A sustained break above the prior swing high at $554.18 could open the door toward $622, while holding $500 would reinforce confidence in the uptrend.
Price forecasts and market commentary
Prominent voices in crypto are taking notice. Former BitMEX CEO Arthur Hayes has publicly predicted ZEC could reach $1,000, citing supply constraints, institutional accumulation and rising demand for privacy assets as the main catalysts (tweeted Dec. 29, 2025). While such bullish targets amplify interest, they also underscore the speculative element of this move.
Risks and takeaways
Regulatory uncertainty around privacy coins remains an overhang. High leverage in futures markets adds volatility risk, and concentrated holdings among whales can magnify swings. That said, the combination of exchange outflows, expanding use of shielded transactions and institutional flows has created a structural backdrop that favors continued upside — provided key supports hold.
Bottom line
ZEC’s recent advance is more than a short-term pump: on-chain supply shifts and renewed institutional demand are tightening availability and changing market dynamics. Traders should watch $500 as a critical support level, monitor leverage and liquidation risk, and keep an eye on whether a break above $554.18 is sustained before betting on higher targets like $622 — or the more ambitious $1,000 forecasts.
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