Zcash's Long-Term Price Potential: Undervalued Amid Rising Privacy Demand and Blockchain Adoption

In October 2025, Zcash (ZEC) has emerged as a standout performer in the privacy coin sector, with a 300% price surge in the month alone and a market cap of $2.5 billion, according to a Dropstab analysis. This growth outpaces even Bitcoin and Ethereum, signaling a renewed focus on privacy as a core value in the crypto ecosystem. While Zcash's price has surged to around $160, its valuation remains significantly lower than its fundamentals suggest, particularly when compared to peers like Monero (XMR) and Dash (DASH). This article examines Zcash's undervaluation thesis through the lenses of market dynamics, technological innovation, and regulatory tailwinds.

Market Dynamics: Privacy as a Premium Asset

Zcash's recent price rally was catalyzed by the launch of Zashi CrossPay, a protocol enabling shielded cross-chain swaps across 20+ blockchains, according to a Coin-Views report. This innovation not only expanded ZEC's utility but also drove a 73% surge in its price over a month. By October 2025, ZEC's 24-hour trading volume surpassed $253 million, outpacing Monero's $180 million, according to a Coinpedia analysis. This shift reflects growing investor preference for Zcash's zk-SNARKs technology, which offers privacy while maintaining an audit trail-a critical feature for institutional adoption.

Monero, despite its $4.78 billion market cap, faces regulatory headwinds due to its mandatory privacy model, which has led to bans on certain exchanges, according to a Coinpedia prediction. Dash, meanwhile, prioritizes speed over anonymity, with its $450 million market cap underscoring its niche appeal. Zcash's optional privacy model strikes a balance, allowing users to toggle between transparent and shielded transactions-a flexibility that aligns with evolving compliance requirements, according to Dropstab.

Technological Fundamentals: Upgrades and Scalability

Zcash's technological roadmap has been a key driver of its undervaluation thesis. The Halo Arc upgrade in 2025 introduced default shielded transactions and unified addresses, streamlining user experience and expanding ZEC's utility in both retail and institutional settings, as reported by Coinpedia. Additionally, the Orchard protocol-set to launch in late 2025-will further enhance scalability and privacy, positioning Zcash as a foundational layer for decentralized finance (DeFi) applications, Dropstab notes.

Cross-chain innovations like ThorSwap and Maya Protocol integration have also broadened Zcash's appeal. These protocols enable privacy-preserving swaps between ZEC, BTC, and ETH, creating new use cases beyond simple value transfer, according to a CoinSpeaker article. Meanwhile, the 2024 halving reduced annual issuance to 1.56%, tightening supply and mirroring Bitcoin's post-halving price patterns, Coinpedia observed. Analysts argue that this scarcity, combined with growing institutional demand, could propel ZEC to $185–$200 in 2025, according to Dropstab.

Institutional Adoption and Real-World Use Cases

Zcash's institutional adoption has been a game-changer. Products like Grayscale's Zcash Trust and partnerships with exchanges like Gemini and Coinbase have legitimized ZEC as a serious investment asset, CoinSpeaker reported. Derivatives markets have also seen a 200% increase in open interest for ZEC, reflecting growing institutional confidence, Coinpedia noted.

Real-world adoption metrics further strengthen the case. Zashi, Zcash's consumer wallet, has recorded over $9.5 million in ZEC swapped or used for payments since late August 2025, according to a BeInCrypto report. The wallet's 12,100 iOS and 4,830 Android installations highlight rising user engagement. Strategic partnerships, such as NymVPN allowing shielded ZEC payments for privacy-focused subscriptions, underscore Zcash's expanding utility, Dropstab observes.

Expert Sentiment and Regulatory Risks

While the bullish narrative is compelling, risks remain. Regulatory scrutiny of privacy coins is intensifying, with the EU planning a 2027 ban and Dubai already prohibiting them, as Coinpedia reported. However, experts like Thor Torrens argue that even a small shift of offshore wealth into Zcash could push its price to $62,893, according to BeInCrypto. Price forecasts vary widely, with CoinCodex projecting $88 by December 2025 and more ambitious targets exceeding $1,000 by 2030, as noted in Coinpedia.

Conclusion: A Privacy-First Undervaluation Thesis

Zcash's combination of institutional adoption, technological innovation, and flexible privacy features positions it as a uniquely undervalued asset. While regulatory risks persist, the growing demand for privacy in a world of CBDCs and financial surveillance ensures Zcash's relevance. For investors, the current price of $160 represents a compelling entry point, with long-term potential tied to the broader adoption of privacy-preserving technologies.