Mike Fay anticipates corrections for this cryptocurrency.
“I wouldn’t chase the price of the asset right now,” says the analyst.
In a market shaken last week by panic, where red dominated the screens, a cryptocurrency defied the tide. Zcash (ZEC), known for its focus on privacy, not only withstood the widespread crash, but catapulted with a rise.
As the market grapples with the aftermath of “Black Friday” on October 10, 2025, which saw bitcoin (BTC) and cryptocurrencies fall, Zcash climb positions.
Zcash has seen a notable rise in 2025, with a 350% increase in its price in the last month. While bitcoin (BTC) and Ethereum’s cryptocurrency ether (ETH) have shown solid performance, ZEC has far surpassed them, going from $40 per coin in September to as high as $300 this week.
This momentum has led zcash to position itself as the 30th digital asset by market capitalization, a notable achievement for a cryptocurrency that seemed left behind in early 2023.
“It’s been a long road and it’s great to see zcash having its moment after it looked like it was over early last year,” points out Mike Fay, market analyst. However, he warns that this rebound is not without risks..
“I wouldn’t chase the asset price right now,” he recommends, suggesting that enthusiasm could be inflated by external factors.
Privacy at the center of the narrative
The appeal of zcash lies in its privacy technology, which allows transparent and private transactions through its “Shielded Pool”, a protected group that hides the details of the operations.
From the beginning of 2025, ZEC supply in this pool has doubled, from 2 million to almost 4.5 million coinswhich represents more than 27% of the circulating supply, as seen in the following graph. This growth suggests that users are using zcash for its original purpose: protecting privacy in an increasingly surveilled digital world, Fay says.
“The optimist in me would like to believe that we are seeing a widespread awakening to surveillance technology and the renaissance of digital privacy,” he explains.
However, he adds a critical nuance: “The cynic in me can’t help but notice that the rise of zcash is due, in part, to the fact that cryptocurrency influencers have talked about it more on platforms like X.” This push on social media has skyrocketed search interest in zcash to levels not seen in the last five years.
Competition in the privacy niche
Zcash is not alone in the privacy-focused cryptocurrency space. Its main competitor, monero (XMR), offers privacy by default, unlike zcashwhich allows you to choose between transparent or private transactions.
“What once seemed like a losing battle against competitor monero is now a competition again,” explains Fay. Although Zcash has surpassed monero in daily transaction growth by 2025, starting from a base of just 1,300 average daily transactions at the beginning of the year, its volume remains modest compared to other networks.
In a comparison chart, Fay includes dash (DASH) and litecoin (LTC), cryptocurrencies focused on payments with some degree of optional privacy. The data shows that zcash has fallen behind in network activity.
While ZEC had more daily active addresses than dash in the past, during the post-“crypto winter” cycle of 2022-2023, dash has vastly outperformed zcash, and both are well behind litecoin.
Explosion in transferred value
Where zcash shines is in the value transferred in dollars. After averaging less than $3 million a day in August, ZEC hit $57 million on a 30-day moving average in October.
The network processed over $312 million, surpassing dash and litecoin combined on that day. “It’s pretty clear where that ZEC is going,” says Fay, referring to the increase in use of the Shielded Pool.
This growth in transferred value reflects renewed interest in privacy, but also raises questions about the sustainability of the rebound. “Sentiment towards the project has clearly changed, judging by the increase in supply from the protected group,” says Fay.
However, Zcash’s transparent daily active address metrics remain low, raising questions about whether the rally is driven by broad adoption or large investors moving assets to the protected group.
Zcash is not without risks
Despite the enthusiasm, technical indicators suggest caution. The MVRV index (Market Value to Realized Value), which measures the relationship between the market price and realized value of a cryptocurrency, is at 2.2 for zcash, a level that has historically preceded corrections.
“I think the ZEC rally is quite extended at this point, based purely on the technicals,” warns Fay.
Although the analyst maintains a position in ZEC and believes in the project, he recommends not chasing the current price. “It’s definitely one to consider adding if this cycle turns bearish,” he adds.
A broader perspective
The contrast between zcash’s performance and the rest of the market during Black Friday is striking. While ZEC climbed, the market took a hit following Donald Trump’s tariff announcement on China, which triggered a drop of up to 17% in bitcoin and the rest of the cryptocurrencies.
Bruno Vaccotti, analyst and founder of the Paraguayan Chamber of Digital Asset Mining, offered a critical vision to CriptoNoticias: “The market learned in the most pedagogical and painful way that gravity is not optional. Bitcoin fell, yes, like an adult who stumbles but continues walking with style.”
Vaccotti describes cryptocurrencies, including those like zcash that have momentarily shined, as more vulnerable.
“Cryptocurrencies stumbled looking for a bottom that didn’t reach them,” he says. According to Vaccotti, bitcoin is distinguished by its simplicity and resistance: “21 million, known emission, without a board studying what to say in communication crises. Volatile? Yes. Antifragile? Also.”
In contrast, Cryptocurrencies often rely on “innovation” narratives that crumble in days of crisiswhen “strategic allies disappear” and regulatory promises do not protect against volatility.
Will there be a sustainable zcash rally?
The question that remains is whether zcash can maintain its momentum. While its privacy technology and increased use of Shielded Pool are positive signs, The growth seems driven, in part, by speculation and the influence of opinion leaders in networks like X.
Vaccotti warns that cryptocurrencies, including those like zcash, They often suffer from their dependence on narratives and strategic partnerships that do not withstand market pressure. “On green days, everything is ‘innovation’; on red days, everything is ‘manipulation’, according to the interests of the parties,” he points out.
Fay, for her part, maintains a balanced stance. While he acknowledges zcash’s potential, he suggests the current rally could be fragile. “It could simply be a case of large cryptocurrency holders choosing ZEC to protect assets rather than a broad base of small holders actually using the network. That remains to be seen,” he concludes.