The market has once again turned its attention to privacy coins. Zcash (ZEC) has increased in price by more than 500% over the past month, and its capitalization has exceeded $5.6 billion, reaching an all-time high. The surge coincided with expectations for the third halving, which will take place in November and reduce the miners’ reward from 3.125 to 1.5625 ZEC per block.
Revival of interest in privacy
According to CoinGecko, Zcash’s trading volumes and market value have reached record levels. Analysts link the spike in interest to intensifying debates about digital privacy and growing concerns over centralized digital currencies (CBDCs) promoted by governments around the world.
Investors tired of increasing control and transparency are once again turning to projects where identity protection and transaction confidentiality are paramount. Unlike most tokens, Zcash was not affected by the October crash that hit the market and continued to grow against the general trend.
From cryptographic experiment to global recognition
Zcash appeared in 2016 as a fork of Bitcoin, developed by the Electric Coin Company (ECC) team led by Zooko Wilcox-O’Hearn. The project grew out of academic research at Johns Hopkins, MIT, and Tel Aviv University, where zero-knowledge proofs technology was proposed—a cryptographic method that allows a transaction to be confirmed without revealing information about the sender, recipient, or amount.
At launch, the idea seemed revolutionary. It allowed the blockchain to remain transparent while hiding all sensitive information. This solution became the foundation of Zcash’s architecture and made it synonymous with anonymity in the crypto world.
An interesting detail in history—in 2016, Edward Snowden participated in the creation of Zcash’s cryptographic parameters, joining the ceremony under a pseudonym. He later confirmed his involvement, calling the project ‘an example of technological privacy that works for the benefit of users.’
Since then, the Zcash network has undergone several major upgrades, improving scalability and security, but the philosophy has remained the same—complete data protection and independence from oversight.
Halving brings scarcity closer
The upcoming Zcash halving will be the third. As with Bitcoin, it occurs every four years, reducing the emission rate and increasing the asset’s scarcity. The block reward will decrease from 3.125 to 1.5625 ZEC, which will limit the inflow of new coins into circulation and may support price growth in the long term.
Halvings are traditionally accompanied by increased trader activity—the supply reduction mechanism acts like a countdown, creating an atmosphere of anticipation. If history repeats itself, ZEC may continue to grow, especially if interest in privacy persists and the available coin supply remains limited.
Regulatory pressure remains
However, there is a downside to the growth. In some countries, pressure on privacy tokens continues. The European Union and South Korea remain wary of them, considering them a possible tool for money laundering. Because of this, several major exchanges previously delisted ZEC, citing compliance requirements.
Nevertheless, in the US, the attitude remains more neutral: regulators do not include Zcash in the list of problematic assets, which gives the project room for development and trading activity.
Bitcoin — a benchmark, not a competitor
The Zcash model largely copies Bitcoin’s economics: a limited issuance of 21 million coins, halvings every four years, and a Proof-of-Work algorithm. But while Bitcoin has become ‘digital gold,’ Zcash claims the role of digital privacy.
Analysts note that demand for ZEC is now driven not only by speculative factors but also by ideological ones—users are seeking tools that allow them to retain control over personal data in the era of digital surveillance.
What’s next?
On the eve of the halving, interest in Zcash continues to grow. Trading volumes are increasing, and the price remains near local highs. If demand for privacy persists, ZEC may consolidate at a new level and finally emerge from the shadow of larger assets.
The halving will be a test: can Zcash maintain market attention and prove that privacy is not a relic of crypto’s early years, but its future.
Read more: Confidence returns to the market — the fear and greed index leaves the fear zone for the first time in a month
