Privacy Coin Zcash Soars to Eight-Year Peak With $20B Valuation
The privacy-focused cryptocurrency surged 45% in seven days, continuing its upward trajectory following Grayscale's August 25 launch of its Zcash ETF on NYSE ARCA.
The privacy-oriented digital currency Zcash (ZEC) has surged to price levels not witnessed since 2016, continuing a robust rally that has elevated the cryptocurrency's total market capitalization beyond the $20 billion threshold.
According to data from CoinGecko, ZEC touched a peak of $1,249.28 on Monday before pulling back to approximately $1,195. The digital asset has posted gains of roughly 45% throughout the previous seven-day period and an impressive 138% across the last 30 days.
Despite this impressive surge, Zcash remains below the record peak established during its launch phase. CoinGecko data shows an all-time high price of $3,191.93 recorded on Oct. 28, 2016, a period when token supply in circulation was significantly limited.
The cryptocurrency enables its users to select between transparent public transactions and "shielded" private transactions. The shielded option employs zero-knowledge proofs as a cryptographic method to validate payments while concealing details about the sender, recipient or the amount being transferred.
For users that prioritize privacy, this could become a 'must have' feature
Zach Pandl, Grayscale's head of research
According to Pandl, artificial intelligence technology could drive increased demand for financial privacy features, as AI systems make it progressively simpler to connect public blockchain transaction records to the real-world identities of users.
The impressive price performance of Zcash has accelerated since Grayscale transformed its previously existing Zcash Trust into an exchange-traded fund structure. The investment product, which trades using the ticker symbol ZCSH, launched on NYSE ARCA on Aug. 25, providing investors with the ability to gain ZEC exposure through traditional brokerage accounts.
As of Friday's market close, the ETF was priced at $83.77 per share, managing $463.2 million in assets under management, based on information from the fund's official website. United States financial markets are not operating Monday due to the Labor Day holiday observance.