Privacy-focused cryptocurrency Zcash (ZEC) experienced a significant surge of 36% in a 24-hour period, climbing from $272 to a peak of $370. This rally represented one of the strongest performances among the top 25 cryptocurrencies by market capitalization during that timeframe.
The sudden price increase was attributed to activity from traders and investors, with some suggesting that heightened interest in privacy-oriented tokens was a primary driver. Crypto contributor AB Kuai Dong noted in an X post that market participants reacted swiftly, creating a frenzy that resembled a month-long FOMO (Fear Of Missing Out) spurt.
Timing of the Rally
The price spike occurred on Sunday, October 26, 2025, several hours after increased social media discussion and optimistic speculation within the crypto community, which fueled a rapid buying spree. Zcash had already seen a substantial increase of 550% over the preceding 30 days, with its upward trajectory continuing.
Zcash surpassed a market capitalization of over $5.97 billion, marking a historic milestone according to CoinMarketCap data. This performance has drawn significant attention to Zcash and other privacy-focused digital assets.
Reasons Behind the Surge
Privacy tokens are increasingly attracting investor interest as regulatory scrutiny on encryption technologies intensifies. Market participants, such as JonnyJpegs, suggest that the ability to conduct confidential transactions is becoming more appealing in an environment where governments are perceived to be tightening their oversight of the market.
Arthur Hayes' Prediction Boosts Momentum
Crypto entrepreneur Arthur Hayes contributed to the bullish sentiment by predicting that Zcash would eventually reach $10,000. Following Hayes' commentary on X, traders reportedly began experiencing FOMO and participated in the rally, contributing to the price increase.
Historically, Hayes' public predictions have been associated with notable short-term token returns. For instance, his commentary in August 2025 was linked to a 4% spike in the HYPE token.
Remaining Risks
Despite the rapid gains, Zcash remains a volatile asset. Cryptocurrencies focused on privacy are inherently susceptible to regulatory challenges, technological vulnerabilities, and market speculation. Traders are advised to exercise caution, as daily price fluctuations of 20-30% are possible.
The recent surge in Zcash's price underscores the growing appeal of privacy-focused digital assets among investors. While optimistic forecasts and market hype can contribute to short-term profits, the token's inherent volatility and potential for regulatory scrutiny persist. Investors are encouraged to stay informed about market trends before making investment decisions.