Zcash's Rise in Privacy: Will Its Anonymity Stay Ahead of Regulatory Oversight?

In recent months, Zcash (ZEC) has experienced a dramatic increase of more than 700%, propelled by renewed interest in privacy-centric cryptocurrencies. As of October 26, 2025, ZEC is trading at $350, with its shielded supply—tokens stored in privacy-enabled addresses—reaching 4.5 million, which accounts for 30% of the total supply, based on information from

and network analytics. This uptick signals a wider revival of privacy-oriented digital assets, as both investors and institutions look for alternatives to transparent blockchain systems amid growing regulatory pressures.

The ascent of Zcash is largely attributed to its advanced zero-knowledge proof (zk-SNARK) technology, which enables users to conceal transaction data while preserving the network’s security. Since the rollout of the Orchard protocol in 2023—Zcash’s most robust privacy upgrade—shielded transactions that hide sender, recipient, and transaction amount have steadily increased. By October 26, the number of shielded

tokens had climbed to 4.864 million, up from 3.82 million just a few weeks prior, according to . Experts attribute this growth to a rising preference for privacy solutions as users respond to expanding financial monitoring.

The expanding shielded supply has broadened Zcash’s “anonymity set,” making it increasingly difficult to trace specific transactions and reinforcing the project’s core privacy mission. “Zcash is demonstrating that privacy and utility are not mutually exclusive,” said Artemis data analyst Art Malkov, who also pointed out that institutional players are allocating more funds to ZEC’s staking opportunities, as reported by The Block.

Technical analysis has also contributed to the positive sentiment. ZEC is currently moving within an upward channel on the four-hour chart, with significant resistance at $290–$305 and support around $300. Should the price break above $400, it could potentially rise to the $550–$600 range, according to

. This optimistic forecast was further fueled by BitMEX co-founder Arthur Hayes, who recently predicted that ZEC could reach $10,000, leading to a 30% price surge in a single day, as noted by .

Institutional engagement has added momentum to Zcash’s story. Grayscale has introduced a

Trust, and Hyperliquid has listed ZEC futures, reflecting growing interest from mainstream investors. At the same time, anticipation around Zcash’s upcoming halving—which will decrease block rewards—has fueled speculation about price increases due to reduced supply.

Despite the bullish sentiment, some market observers advise prudence. DeFi specialist Ignas DeFi cautioned that Zcash’s rally, driven by social media hype, could resemble previous “pump-and-dump” scenarios, where retail traders end up providing liquidity for larger holders. “Zcash is a classic case of how narratives can go viral,” he remarked, adding that the token’s newfound popularity on platforms like X (Twitter) may not guarantee lasting value, as reported by CoinEdition.

There are also regulatory concerns. While Zcash’s privacy features are attractive to users in regions with stringent financial controls, they may also draw attention from regulators aiming to prevent illegal activities. The U.S. Treasury’s recent scrutiny of privacy coins and the possibility of stricter rules on shielded transactions remain significant risks, according to Coinotag.

The future of Zcash will depend on its ability to innovate in privacy while staying compliant with regulations. With more than 30% of its supply now shielded and increasing institutional participation, Zcash is positioning itself as a frontrunner in the privacy-focused crypto sector. Nevertheless, as with all speculative assets, the longevity of its rally will rely on underlying fundamentals and the market’s ongoing support for privacy-driven projects.

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