Bitcoin News Update: Zcash Soars by 496% as Privacy Technologies Gain Traction Amid Regulatory Challenges

Over the past three months, Zcash (ZEC) has soared by almost 496%, fueled by increased use of its privacy-enhancing technology and a notable rise in on-chain transactions. Currently, the privacy-centric digital asset is trading close to $235.59. According to

, bullish investors are targeting a breakout above $300 as both retail and institutional interest intensifies.

The main driver behind ZEC’s impressive rally is its innovative zero-knowledge proof (ZKP) shielding feature, which enables users to move funds between public and private pools. The Bitget report highlights that more than 4.84 million

tokens—representing nearly 30% of the total supply—have been shielded, indicating a rising preference for privacy-focused transactions. This uptick in shielding has also boosted the value of unshielded ZEC, as users look to utilize the transparent pool for daily use while preserving privacy.

Growing interest from retail investors has further propelled ZEC’s upward momentum. Open interest (OI) in ZEC futures surged by 17.05% in just one day, reaching $307.78 million. Meanwhile, the OI-weighted funding rate improved from -0.0197% to -0.0024%, suggesting a decline in short positions and a shift toward risk-taking, according to the Bitget report. ZEC’s performance has surpassed the broader market, outperforming

and during a time of increased macroeconomic uncertainty.

From a technical perspective,

is approaching a pivotal breakout. On the 4-hour chart, ZEC has bounced off the 20-period Exponential Moving Average (EMA) and is challenging the $300 mark, a significant psychological barrier. If ZEC can maintain a close above this level, it may revisit its 52-week high of $304.45 and potentially attract more speculative buyers, as noted in the Bitget report.

Despite the positive momentum, there are still obstacles. Centralized exchanges have often limited ZEC listings due to regulatory concerns about its privacy features, which has hindered wider adoption, the Bitget report points out. Broader economic risks, such as ongoing U.S.-China trade disputes and global market volatility, could also impact long-term prospects.

The wider cryptocurrency landscape is also undergoing significant changes. For example, Binance’s Alpha 2.0 platform achieved a record $10.2 billion in daily trading volume in October 2025, according to

. At the same time, Bitcoin’s liquidity has tightened, with long-term holders accumulating over 373,000 BTC in a single month, pushing sell-side supply to its lowest point in seven years, as reported by Coinotag. These trends underscore a maturing market in which privacy-oriented assets like ZEC could see increased interest from both institutional and retail participants.

For now, Zcash supporters remain confident. A move above $300 would represent a 12.67% increase from current prices, and ongoing adoption of its privacy technology along with institutional support could propel ZEC toward $320 or beyond. As the crypto sector continues to evolve, ZEC’s distinct role in the privacy segment may be key to attracting investors who value both functionality and security, the Bitget report concludes.

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