Zcash Surges Past XRP and Ethereum...Is the Privacy Coin Reviving?

▲ Zcash (ZEC), Ethereum (ETH), XRP (XRP)/AI generated image

Zcash (ZEC) surged over 30% in 24 hours, outperforming XRP and Ethereum, as institutional investor interest in privacy coins and the quantum-resistance narrative simultaneously drove up its price.

According to crypto news outlet Benzinga on May 6 (local time), ZEC rose by over 30% in the last 24 hours. The disclosure by Multicoin Capital that it holds Zcash, coupled with the market's attention to the quantum-resistance narrative of privacy coins, strengthened the upward trend.

Tushar Jain, co-founder and managing partner of Multicoin Capital, announced at Consensus Miami that they have built a significant position in Zcash. This marks a significant shift from Multicoin Capital's critical stance on privacy coins in 2019. Jain explained that while Bitcoin (BTC) can withstand protocol-level freezes, in a public ownership structure, holders can be exposed if external entities such as governments or creditors link coins to specific individuals.

Tokens with built-in privacy features like ZEC focus on mitigating such risks by obscuring transaction details and user identities. ZEC has risen approximately 122% in the last month, and its year-over-year increase has surpassed 1,500%. Zcash's FCMP++ upgrade entering its next testnet phase on May 6 also accelerated the rally. This upgrade aims to improve privacy scalability, shielded transaction efficiency, and overall transaction speed.

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The quantum-resistance narrative also stimulated investor sentiment. Through its ZODL roadmap, Zcash is foregrounding quantum-resistant cryptographic technology amid growing long-term blockchain security concerns. The privacy and quantum-resistant cryptocurrency sectors rose over 22% today, with ZEC leading the trend. Approximately 20-25% of circulating ZEC is held in encrypted addresses, and about 30% of all transactions are related to shielded pools.

Expectations of a Robinhood listing and a Grayscale ETF also increased supply pressure. Analyst Wise Advice explained that Multicoin Capital's position disclosure and the Robinhood listing opened accessibility to millions of retail investors, further amplified by the Grayscale ETF narrative. The analysis suggests that with over 30% of the supply in a shielded state, circulating supply has decreased while new demand has grown. Zenrock's wrapped ZEC product, based on Solana (SOL), exceeded $15 million in trading volume late last year, connecting Zcash privacy demand with Solana trading activity.

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The upward trend is also clear in its technical structure. Zcash formed a cup-and-handle pattern from December to March, with the bottom around $50-$60. The handle was completed as a falling wedge pattern in April, and since the April low of approximately $270, ZEC has risen about 113% in less than 5 weeks. Benzinga reported that a clear breakthrough of $600 would set a cup-and-handle measured target of $750-$800. Key resistance levels were identified at $600 and $700, with support in the $500-$520 range.

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*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*