Zcash’s Resurgence: A Flash in the Pan or a Privacy Powerhouse Reborn?

The privacy coin Zcash (ZEC), a relic from the crypto-wild-west era, experienced a dramatic resurgence in late 2025, capturing the attention of seasoned crypto traders and newcomers alike. After years of relative dormancy since its 2016 launch, ZEC saw its price skyrocket, fuelled by renewed interest and a mix of bullish catalysts. But is this a sustainable rally, or just another pump-and-dump scheme waiting to unravel?

Hayes’ Endorsement Ignites Frenzy

The spark that ignited the Zcash rally can be traced back to a post from Arthur Hayes, the controversial co-founder and former CEO of BitMEX. Hayes, known for his contrarian macro views, publicly declared a $10,000 price target for ZEC, sending shockwaves through the crypto markets. This endorsement acted as a catalyst, triggering a wave of FOMO (Fear Of Missing Out) and driving the price up.

According to CoinGecko data, ZEC has traded as high as $332.52 in the past three months. One analyst noted the price had increased by 755% in the same time frame, testing the $305 resistance.

Structural Catalysts: More Than Just Hype?

While Hayes’ endorsement played a significant role, analysts point to other structural factors that may have contributed to the Zcash rally. These include:

• Institutional Interest: Grayscale launched a Zcash trust, offering institutional investors a regulated pathway into the ZEC market.
• Exchange Listings: Increased accessibility via listings on platforms like Hyperliquid.
• Upcoming Halving: The anticipation of ZEC’s halving event is creating scarcity narratives.
• Privacy Concerns: As regulatory scrutiny intensifies and concerns over data privacy grow, Zcash’s inherent privacy features might be attracting renewed attention.

It’s worth noting that the halving narrative, while often a bullish catalyst, is less impactful for privacy coins. The focus remains on demonstrable utility and adoption, not just tokenomics.

The Skeptics’ Corner: Exit Liquidity and Hype Cycles

Not everyone is convinced that Zcash’s resurgence is built on solid foundations. Some analysts warn that the rally is driven by hype and FOMO, potentially creating exit liquidity for coordinated pump-and-dump schemes.

Ignas DeFi, a prominent DeFi analyst, described the Zcash rally as a “reflexive loop” where traders see ZEC content on social media platforms like X and buy in to avoid missing out, amplifying the hype and fueling the cycle further.

Mert Helius, CEO of Helius Labs, expressed skepticism, referencing ZEC’s valuation relative to larger-cap altcoins. His perspective highlights the critical need to assess Zcash’s fundamental value proposition against its market capitalisation.

Technical Analysis: Ascending Triangle and Potential Pullbacks

From a technical analysis perspective, ZEC’s price action has been trading within an ascending parallel channel, a bullish formation suggesting further gains. However, the Relative Strength Index (RSI) currently hovers around 79, indicating that ZEC is heavily overbought and prone to a correction.

Key support levels to watch include the $281.35 mark. A decisive break below this level could trigger a significant pullback, potentially sending the price spiralling down to $240 or even below the $200 psychological level.

Zcash in 2025: Privacy vs. Regulation

Zcash’s future hinges on its ability to navigate the increasingly complex regulatory landscape. While the demand for privacy solutions is undoubtedly growing, regulators are cracking down on coins perceived as enabling illicit activities. Zcash’s selective disclosure features could be a selling point, allowing users to comply with regulations while maintaining privacy when needed.

The ongoing debate surrounding central bank digital currencies (CBDCs) also plays into Zcash’s potential. If CBDCs become widespread, concerns about government surveillance could drive more individuals to seek out privacy-focused cryptocurrencies like Zcash. However, enhanced surveillance tech could also deanonymise privacy coins.

The Verdict: Proceed with Caution

Zcash’s recent rally has undoubtedly breathed new life into this once-dormant project. However, investors should approach ZEC with caution, conducting thorough due diligence and understanding the risks involved. While the project has seen interest in 2025 and price has surged, the crypto world is notoriously volatile, and what goes up can just as easily come crashing down.

It’s imperative to consider whether this rally is fundamentally driven or the result of hype and coordinated pumps. Long-term success will depend on Zcash’s ability to innovate, attract developers, and demonstrate real-world utility in a regulatory-compliant manner.