Over the past few weeks, the price of Zcash (ZEC) has seen a significant increase. According to CoinGecko data, ZEC's price rose by 1.8% in the last 24 hours. Zcash (ZEC) has climbed 66% over the past week, 75% over 14 days, 109.8% over the past month, and 1,353.5% since May 2025. Let’s explore the reasons behind Zcash (ZEC)’s recent price surge and what you should know before investing.
What is driving the price increase of Zcash?
According to cryptocurrency analytics firm Santiment, the price surge of Zcash (ZEC) is likely due to increased market demand for privacy-focused cryptocurrencies. This development may be a response to growing concerns about surveillance.
The price increase of Zcash (ZEC) may also be due to significant investment by the U.S. cryptocurrency hedge fund Multicoin Capital in the project. According to Multicoin Capital co-founder Tushar Jain, the firm has “built a substantial position in $ZEC since February.” In an X post, Jain further highlighted growing concerns among individuals about governments seizing investors’ funds. He said, “We believe that truly private, censorship-resistant, and seizure-resistant assets have clear product-market fit, and demand is accelerating. We view $ZEC as the most concise way to express this view in public markets.”
Zcash (ZEC) experienced a difficult period earlier this year after its core operations were severely impacted. The development team exited following a period of internal conflict, with the entire team stepping down. This led to a significant drop in the price of this privacy-focused cryptocurrency. According to CoinGecko records, ZEC’s price fell below $200 in early March this year. However, the coin appears to be making a strong comeback.
Although Zcash (ZEC) has experienced a remarkable rebound over the past few weeks, it may still face challenges ahead. ZEC remains 82.5% below its all-time high of $3,191.93 set in October 2016, over four years ago. New volatility could trigger a price correction. Additionally, investors who bought at lower levels may begin to take profits. Moreover, there may be an imbalance between inflows into derivatives and outflows from spot markets, which could lead to another price decline.