Zcash News Today: Privacy-First Zcash Rides Crypto's Institutional Wave

Zcash (ZEC) has surged to a new peak in 2025, with its price surpassing $490 and market capitalization breaching $8 billion, outpacing altcoins like Sui (SUI) and Hedera (HBAR), according to an FXStreet forecast. The privacy-focused cryptocurrency's rally has been fueled by a combination of technical momentum, strategic upgrades from its development team, and a broader industry shift toward financial privacy. Open interest in ZEC futures has hit record highs, reaching $773.84 million, signaling robust institutional and retail participation, the FXStreet analysis added.

ZEC's price has gained over 17% this week, nearing $500, with technical indicators pointing to further upside. The RSI on the daily chart sits at 82, indicating strong bullish momentum, while the 161.80% Fibonacci extension level at $578.53 marks the next key resistance, the FXStreet piece noted. However, signs of market overheating are emerging. Open interest has plateaued, and the long-to-short ratio, though still bullish at 1.05, has approached its monthly high, suggesting traders are cautiously managing positions, the same FXStreet analysis observed.

Electric Coin Co. (ECC), Zcash's developer, has outlined aggressive Q4 2025 plans to enhance privacy and usability, according to a Crypto.News report. Key initiatives include integrating ephemeral addresses for swaps via the NEAR Intents protocol, enabling Pay-to-Script-Hash (P2SH) multisig wallets, and improving Zashi wallet functionality. These upgrades aim to strengthen Zcash's shielded transaction model, which now accounts for 20–25% of circulating ZEC and 30% of all transactions, according to a Coinpedia analysis. ECC's roadmap also emphasizes managing developer funds through multisig wallets, reflecting a commitment to security and transparency, the Crypto.News report added.

Zcash's resurgence coincides with Bitcoin's growing institutional adoption, which has sparked renewed interest in privacy-focused assets. Critics of Bitcoin's ETF-driven institutionalization argue that the asset is losing its grassroots appeal, creating a niche for privacy coins like ZEC, a BeInCrypto piece suggested. Zcash's optional-privacy model—allowing users to choose between transparent and shielded transactions—has positioned it as a more flexible alternative to Monero (XMR), which lacks such flexibility, a CoinDesk article noted. ZEC's market cap briefly surpassed XMR's in late October, reaching $7.2 billion, a milestone analysts attribute to increased institutional acceptance and endorsements from figures like Arthur Hayes, CoinDesk reported.

Despite the optimism, ZEC faces headwinds. Retail activity appears to be cooling, with open interest declining from a peak of $669 million to $645 million, and negative funding rates indicating traders are de-risking positions, according to an FXStreet report. Additionally, Zcash's price has retreated from its $449 high amid broader crypto market corrections, testing support at $390, the FXStreet analysis added. Analysts warn that profit-taking and regulatory scrutiny could introduce volatility, particularly as global markets await clarity on U.S. interest rate policies .

Zcash's trajectory hinges on balancing innovation with market stability. While technical indicators and ECC's roadmap suggest a strong foundation, the cryptocurrency must navigate regulatory shifts and competitive pressures from other privacy coins. With ZEC trading near all-time highs and institutional adoption on the rise, the coming months will test whether privacy-focused assets can sustain their momentum in a rapidly evolving crypto landscape.

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