Zcash surged sharply in one day, while the crypto market faced a major wave of forced margin position closures: the total volume of liquidations for the asset reached $54.3 million, with most of the losses coming from those who bet against the coin’s rise.
Short Sellers Took Almost the Entire Hit
About 90% of all liquidations were short positions. In numbers, the picture looks like this:
- All platforms — short positions: $48.91 million.
- All platforms — long positions: $5.39 million.
- Binance — all positions: $20.69 million.
- Binance — short positions: $17.5 million.
ZEC Price Posts Strong Growth Amid ETF Interest
In one day, ZEC quotes rose by 19% and reached $1,220. This jump pushed the asset to ninth place in the global cryptocurrency ranking: Zcash’s market cap exceeded $20 billion.
Zcash has already passed the $1,000 mark: the growth was supported by the ETF launch, inflows into the new fund, and the sharp closure of short positions. Further dynamics will depend on whether demand for the fund remains and whether the market can withstand such a rapid price acceleration.
The growth looks even sharper over a longer period. In a month, the coin has gained more than 130%, and over the year its price has increased by more than 2,700%.
Grayscale ETF Boosted Demand for the Asset
The main driver of the movement was the launch of the first US spot ETF for Zcash by Grayscale. Trading in the fund under the ticker ZCSH began on NYSE Arca on August 25 after the conversion of a previously existing trust.
By September 4, the new investment product had attracted $34.4 million in net inflows. The total volume of assets under management exceeded $400 million, helped by the rapid appreciation of the underlying cryptocurrency.
Why Interest in Zcash Remains
Zcash is a cryptocurrency often considered not only as a speculative coin but also as a project at the intersection of cryptocurrencies, blockchain, and cryptography. The main source of interest in the asset is privacy, encryption, and zero-knowledge proof technologies.
- Privacy: the idea of Zcash is linked to privacy and encryption, meaning stronger protection of transaction data.
- Technologies: the focus is on zero-knowledge proof and non-interactive zero-knowledge proof.
- How it works: zero-knowledge proof allows you to confirm the correctness of a transaction without revealing unnecessary details of the transaction itself.
- Historical reference: for such solutions, the Zerocoin protocol is often mentioned.
- Ecosystem: the project is associated with the Zcash Foundation and Major Grants Fund.
- Founder: among the key figures of Zcash is Zooko Wilcox-O’Hearn.
- Comparisons: in the market, Zcash is often compared to Monero, Bitcoin, and Ethereum.
- Infrastructure: important topics include proof of work, elliptic-curve cryptography, digital currency, and technology.
- Where to buy: major platforms, including Coinbase, provide access to Zcash trading.
Zcash’s strong point is its focus on privacy, while the main market risk now is high volatility: the sharp rise has already led to liquidations totaling tens of millions of dollars.
A margin position is a trade with borrowed funds provided by an exchange or broker against margin collateral. This approach allows a trader to control an amount larger than their own capital, but along with potential profit, the risk of total loss increases sharply if the price moves against the position.
A spot ETF is a fund that directly buys and holds the underlying asset, and its shares are traded on a traditional exchange. For investors, this is a way to participate in cryptocurrency price changes through a regular brokerage account without buying and storing coins themselves.
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