ZEC Outperforms on Privacy Demand; Hyperliquid Dominates Derivatives

ZCash (ZEC) outperformed the broader crypto market in Q4 2025 due to privacy demand and post-halving supply dynamics.

• Hyperliquid recorded $2.95 trillion in derivatives trading volume in 2025 while maintaining 100% uptime during market stress according to Wublock.

• Both projects highlight growing investor interest in specialized crypto niches like privacy and on-chain infrastructure.

ZCash (ZEC) and Hyperliquid emerged as crypto market leaders in 2025 despite sector volatility. ZEC rallied amid renewed demand for privacy, while Hyperliquid captured massive derivatives trading volume. Their performances underscored shifting investor priorities within blockchain ecosystems. These developments signal maturation beyond mainstream cryptocurrencies.

Why Did ZCash (ZEC) Outperform the Crypto Market?

ZEC outperformed significantly in late 2025. Renewed focus on privacy assets drove gains after its protocol upgrade boosted shielded transactions. The coin briefly surpassed Bitcoin and XRP in trading volume on major exchanges mid-November. This surge reflected market speculation about privacy use cases amid tightening regulations. Network shielded balances grew as adoption increased. Privacy coins gained traction despite regulatory headwinds during the period.

Post-halving supply dynamics created additional price pressure. The reduction in new ZEC issuance coincided with rising demand for anonymous transactions. Technical upgrades executed smoothly enhanced investor confidence in the project's roadmap. Exchange listings provided greater accessibility for traders seeking exposure. Market participants rotated into privacy assets as a hedge against surveillance risks. ZEC's fundamentals strengthened through measurable usage growth.

How Did Hyperliquid Lead On-Chain Derivatives Growth?

Hyperliquid dominated decentralized derivatives trading in 2025. The platform processed $2.95 trillion across 198.9 billion transactions last year. It added approximately 609,700 new users while generating $844 million in annual revenue. These metrics demonstrated scalable demand for on-chain trading infrastructure. Derivatives volume migrated toward decentralized protocols as technology improved.

The platform maintained 100% uptime during extreme market volatility. On October 11 alone, Hyperliquid handled $10.276 billion in liquidations without system failures or bad debts. This reliability attracted $3.87 billion in net inflows and boosted TVL to $4.15 billion. Robust performance during stress tests validated the protocol's technical architecture. Infrastructure resilience became a key differentiator for derivatives traders.

Emerging competitors like Aster and Lighter challenged but didn't unseat Hyperliquid's position. The platform's first-mover advantage and consistent execution retained user loyalty. Market structure evolution favored non-custodial solutions as regulatory scrutiny increased on centralized entities. Derivatives represent crypto's fastest-growing vertical with sustainable revenue models. Hyperliquid captured this trend through superior product-market fit.