While bitcoin grapples with divisive institutional adoption, an established privacy token has made a spectacular comeback. In just five weeks, Zcash (ZEC) has surged from relative obscurity to a remarkable +900% increase, reaching an unprecedented high of $735 this Friday, a level not seen in nearly eight years. The asset has since stabilized around $666, still showing a significant 74% increase over the past week. This unexpected rebound is shaking the market and reigniting the debate surrounding cryptocurrency privacy.
In brief
- •Zcash (ZEC), a long-standing privacy coin, has achieved a spectacular comeback with a +900% rise in five weeks.
- •The ZEC price reached $735 on November 7, marking its highest level in almost eight years, before stabilizing at $666.
- •This surge triggered liquidations exceeding $51 million in short positions.
- •Several analysts consider Zcash a credible alternative to Bitcoin, more aligned with cypherpunk ideals.
Zcash Breaks Records: A Look Back at a Historic Rally
On Friday, November 7, Zcash dramatically impacted the market, soaring 33% in a few hours to a peak of $735. It later retracted to around $666. This surge was accompanied by the unveiling of ECC's technical strategy for a more confidential and robust token.
The significant price increase led to the liquidation of over $51 million in short positions, positioning ZEC as the third most liquidated asset of the day, following Bitcoin ($150M) and Ethereum ($146M).
Key points and events from this historic rally include:
- •A 33% increase in 24 hours on November 7, with an intraday peak at $735 and a closing price of $666.
- •A 74% increase over the week, making it one of the strongest performances among the top 100 cryptocurrencies.
- •Massive liquidations totaling over $51 million in short positions across all products.
- •ZEC becoming the third most liquidated asset, after BTC and ETH.
- •A +900% surge in five weeks, following a period of stagnation around $40 for over three years.
- •Despite this significant leap, Zcash remains 79% below its all-time high of $3,191, which was set in 2016.
- •The current price reached is the highest since January 2018.
The origin of this price explosion is attributed not only to sudden market interest but also to a domino effect related to the asset's historically low liquidity and the leverage employed by many traders.
A Resurgence Fueled by Distrust and Politics
Beyond market movements, Zcash's rise appears to be driven by deeper concerns. Many analysts connect this rally to growing doubts about Bitcoin's capacity to maintain its status as a truly decentralized and privacy-respecting tool.
Will Owens, an analyst at Galaxy Digital, views Zcash as a spiritual successor to Bitcoin. He notes in a report, "Zcash is gradually establishing itself as an alternative to Bitcoin." Owens explains that the interest in ZEC stems from "its ideals of privacy and decentralization dear to cypherpunks," especially in a climate where Bitcoin's institutional adoption breeds mistrust and skepticism.
As Bitcoin moves closer to major financial hubs through ETFs and derivatives, Zcash is positioning itself as a radical alternative, built on principles of anonymity and technological independence.
Furthermore, another significant triggering factor was the sentencing on Thursday, November 6, of Keonne Rodriguez, a developer of Samourai Wallet, to five years in prison. This verdict, stemming from an unlicensed money transmission case, has been sharply criticized by digital privacy advocates.
The severity of this sentence, representing the maximum penalty, may have been perceived as a warning signal by the crypto community, accelerating renewed interest in projects focused on native privacy, such as Zcash. In this context, the ZEC rally might not be purely speculative but also a reaction to a tense judicial and political atmosphere surrounding privacy-preserving technologies.