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- Zcash shielded supply reached a record 5.1 million ZEC, signaling growing privacy adoption.
- Network hashrate hit an all-time high, strengthening security and miner confidence.
- Strong buying pressure and elevated funding rates suggest bullish sentiment but also increase volatility risks.
Zcash (ZEC) is moving in the opposite direction. The leading privacy-focused cryptocurrency gained more than 13% over the past 24 hours, climbing to around $618 even as major assets like Bitcoin, Ethereum, and Solana posted losses.
The rally appears to be driven by more than short-term speculation. On-chain data shows growing adoption of Zcash’s privacy features, while network security and trader activity have also reached notable milestones.
Record Amount of ZEC Moves Into Private Pools
One of the strongest indicators behind Zcash’s recent performance is the rapid growth of its shielded supply. Shielded transactions allow users to keep transaction details private, a feature that has long distinguished Zcash from other cryptocurrencies.
The total amount of ZEC held in shielded pools has now reached an all-time high of roughly 5.1 million coins. Most of that supply is concentrated in Orchard, the network’s newest privacy pool, which holds around 4.5 million ZEC.
This trend suggests that users are increasingly utilizing Zcash for its intended purpose rather than simply holding the asset for speculation. Growing demand for privacy-focused transactions comes at a time when concerns about blockchain transparency and financial surveillance continue to rise across the industry.
Network Security Reaches a New Milestone
Beyond user adoption, Zcash’s underlying network is also showing signs of strength.
The network’s hashrate recently climbed to a record 16.3 GH/s, surpassing previous highs recorded in 2022 and 2024. A rising hashrate reflects increased mining participation and strengthens the blockchain’s resistance to potential attacks.
The growth is particularly notable because it comes after Zcash’s November 2024 halving event, which reduced the rate of new coin issuance. Instead of scaling back operations, miners appear to be committing additional resources to the network, signaling confidence in Zcash’s long-term prospects.
Traders Continue to Bet on Further Upside
Market data also points to strong investor interest.
On perpetual futures exchange Hyperliquid, ZEC stood out as one of the few major cryptocurrencies attracting net buying activity while Bitcoin, Ethereum, and Solana experienced net selling pressure. Open interest approached $368 million, highlighting significant trader participation.
Funding rates have also surged, indicating that traders are willing to pay a premium to maintain long positions. While this reflects bullish sentiment, it also introduces risk. Extremely elevated funding rates can signal an overheated market, increasing the possibility of sharp pullbacks if momentum weakens.
Also Read: ZCash Crashes 20% After $900M Crypto Liquidation Bloodbath — Is More Pain Coming?
Zcash’s recent outperformance is being supported by a combination of growing privacy adoption, record network security, and strong derivatives market demand. The rise in shielded supply suggests increasing real-world use of the network, while miners and traders continue to show confidence in the asset.
However, the market remains highly leveraged, and elevated funding rates could trigger volatility if sentiment changes. For now, ZEC remains one of the few cryptocurrencies defying broader market weakness, supported by both on-chain fundamentals and investor demand.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
