Zcash Experiences Surge in Shielded Transactions
Zcash (ZEC) has experienced a notable increase in shielded transactions as adoption of privacy technologies gains momentum. Arthur Hayes, former BitMEX CEO, has advocated for withdrawing ZEC from centralized exchanges and utilizing shielded wallets.
"If you hold $ZEC on a CEX, withdraw it to a self-custodial wallet and shield it." - Arthur Hayes
Meanwhile, the Zcash Foundation and Electric Coin Company are enhancing privacy features, especially with tools like the Zashi wallet.
Zcash Temporarily Surpasses Monero in Market Cap
This rise in shielded transactions has led to Zcash temporarily surpassing Monero by market capitalization. Institutional support from Cypherpunk Technologies Inc., purchasing over 200,000 ZEC, highlights growing confidence in the coin’s privacy features.
The trend demonstrates strong institutional interest and signals a shift towards more on-chain privacy. Data reveals that shielded ZEC supply has exceeded 30% of the circulating supply, showcasing increased user adoption of privacy protocols.
Zcash Shielded Supply Exceeds 30% for First Time
Previous Zcash protocol upgrades, such as Sapling and Orchard, have historically spurred short-term boosts in shielded transactions and price. Current activity, however, surpasses earlier levels, with shielded supply now exceeding 30% for the first time.
Experts underline that the uptick in institutional interest may buffer potential regulatory scrutiny that previously followed privacy protocol upgrades. Sean Bowe's Project Tachyon aims to enhance transaction scalability, expected to further boost Zcash’s privacy adoption.