Grayscale Report Suggests Zcash Faces Revaluation Opportunity in the Privacy Sector

According to a Grayscale research report, as AI-driven financial monitoring capabilities continue to expand, demand for financial privacy is entering its third wave of heightened interest, potentially benefiting Zcash (ZEC). The report notes that Zcash’s shielded transaction technology, based on zero-knowledge proofs, can conceal the sender, recipient, and transaction amount—differentiating it from Bitcoin’s transparent on-chain records. Current on-chain data shows that shielded transactions now account for approximately 90% of Zcash’s total transaction volume, with shielded supply reaching around 4.2 million ZEC, or 25% of the circulating supply—both record highs. On the valuation front, ZEC’s market capitalization stands at approximately $8 billion, representing only 0.6% of the total market cap of Grayscale’s “Monetary Crypto” sector. If its market share were to increase to 5%, the theoretical valuation upside could be roughly nine times its current level. The report also cautions that Zcash faces multiple risks, including regulatory compliance challenges, legacy issues from its trusted setup, quantum computing threats, and the execution of protocol upgrades—investors should carefully evaluate these factors.