Zcash, on a blazing 70% rally..."The next surge will be in privacy coins"

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

Zcash (ZEC) has surged more than 70% in a week, clearly indicating a shift of funds towards privacy-centric cryptocurrencies. As concerns grow over artificial intelligence (AI), quantum computing, and expanding financial surveillance, investors are reportedly refocusing on transaction anonymity and asset protection narratives.

According to Cointelegraph on May 8 (local time), Zcash traded at approximately $346 on May 1 before rising to $593.86 on Wednesday, marking a 7-day high. Pav Hundal, Senior Market Analyst at cryptocurrency exchange Swyftx, explained the surge in Zcash by stating, “Amid widespread concerns about the impact of AI, quantum computing, and financial surveillance on cryptocurrencies, investors have started to show more interest in privacy projects.”

Institutional capital movements also influenced investor sentiment. Tushar Jain, co-founder of investment firm Multicoin Capital, announced on Wednesday via X (formerly Twitter) that he had built a “significant position” in Zcash since February. Jain argued that institutions would increasingly seek privacy assets to protect personal wealth, evaluating Zcash as an attractive investment.

Industry movements surrounding privacy features are also ongoing. Ethereum scaling solution Polygon launched a private stablecoin payment feature on Sunday, and Aptos Labs' privacy feature, Confidential APT, was applied to the mainnet last April. Cointelegraph reported that Zcash is one of the representative privacy cryptocurrencies, with Monero (XMR) being a major competing asset.

Market intelligence platform Santiment analyzed in a Wednesday X post that Zcash is strongly rebounding with a surge in social media mentions and FOMO (Fear Of Missing Out) sentiment alongside its price increase. Santiment pointed out that a lack of trust in governments might be a factor driving individual investor interest. Concerns about surveillance, tightening exchange regulations, and AI-powered data tracking spreading across financial platforms are making privacy-centric assets viewed as a hedging tool.

However, it is yet to be confirmed whether this surge will lead to a long-term re-evaluation. The privacy theme was one of the major investment trends in the cryptocurrency market in 2025, and Zcash approached $700 last November, reaching its highest level since 2018. Monero also hit an all-time high of $797.73 last January, but neither asset maintained its gains. Regarding the recent Zcash movement, Hundal stated, “It is characterized by a narrative rotation towards privacy coins,” adding, “However, it is still cautious to call it a clear fundamental re-evaluation. More time is needed to see how long investor interest will last.”

*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.*