Zcash Leads 2025 Rally Among Large-Cap Cryptocurrencies

Zcash (ZEC) outperformed most large-cap cryptocurrencies in 2025 amid renewed interest in digital privacy. The token rose more than 1,200% since September as investors sought assets offering transaction confidentiality. This surge coincided with regulatory clarity and increased institutional participation in the sector.

Cypherpunk Technologies, a digital asset treasury firm, added 56,418.09 ZEC for approximately $29 million, now holding 290,062.67 ZEC—about 1.76% of the circulating supply. The firm aims to control 5% of the Zcash network as part of its long-term privacy strategy.

Will McEvoy, Cypherpunk’s CIO, emphasized the strategic importance of the Zcash position, stating that the company is “well positioned for a market that is repricing the societal importance of privacy.” The firm’s cost basis of $334.41 per ZEC now reflects a significant unrealized gain.

Why Did Cypherpunk Expand Zcash Holdings?

Zcash’s privacy features, including zero-knowledge proofs, have made it attractive amid growing concerns over digital surveillance. Cypherpunk’s acquisition was based on a belief that privacy tokens will gain further institutional traction in 2026. The firm also cited long-term scalability goals in applications related to privacy-preserving technologies.

The move aligns with broader market trends. Zcash has seen increased adoption in real-world use cases, including financial transactions and data security. Its performance in 2025 demonstrated that privacy-focused coins can thrive even as macroeconomic pressures affected broader crypto markets.

How Might ZEC Perform in 2026?

Analysts remain cautiously optimistic. Former BitMEX CEO Arthur Hayes suggested ZEC could push toward $1,000, citing liquidity from Fed tools and rising demand for privacy tokens. However, Eric Van Tassel warned of a potential $400 pullback before any sustainable breakout, noting that rising wedges often act as liquidity traps.

Zcash’s price action has shown strong institutional interest. Despite Bitcoin’s annual loss, ZEC continued to gain traction, driven by its unique positioning in the privacy space. Analysts are monitoring key resistance levels around $550 and $600 to gauge further momentum.

What Are Analysts Watching for Zcash’s Future?

The broader macroeconomic environment and regulatory developments could influence Zcash’s trajectory. As the U.S. enters a new administration, crypto policies will shape investor sentiment and institutional participation. Analysts are also tracking the performance of other privacy coins like XRP and Algorand for potential market rotations.

Cypherpunk’s strategy highlights a growing trend among digital asset treasuries to focus on privacy-centric tokens. As Zcash continues to gain institutional adoption, its ability to maintain relevance in a crowded market will depend on further innovations and use-case expansion.