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Zcash Surges 13% Amidst Market Decline
Zcash (ZEC) experienced a remarkable increase of over 13% in the past 24 hours, reaching approximately $618, while the majority of major cryptocurrencies faced significant declines. Notably, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all saw drops, making Zcash one of the few winners in the current market scenario.
This surge can be attributed to the on-chain dynamics rather than just price movements. Data indicates that the shielded supply of ZEC, which refers to the tokens stored in private pools that conceal transaction details, has risen to a record high of around 5.1 million ZEC. Most of this supply is concentrated in the latest pool, Orchard, which accounted for about 4.5 million ZEC by the end of May, while older pools, Sapling and Sprout, hold significantly less at approximately 592,000 and 25,000 ZEC, respectively.
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"The increase in shielded supply is a clear sign of real privacy usage," according to market analysts.
In summary, Zcash's price increase is closely linked to its growing shielded supply, indicating a rising demand for privacy-focused transactions.
Record Hashrate and Miner Activity
The network has also seen a significant uptick in its hashrate, which reached an all-time high of 16.3 GH/s by the end of May. This surpasses previous peaks of around 11 GH/s in 2022 and 10 GH/s in 2024. A higher hashrate enhances the security of the blockchain, suggesting that miners are optimistic about profitability and are increasing their computational power.
The upcoming halving event in November 2024, which will reduce new emissions, is prompting miners to expand their capacities in a tightening supply environment rather than retreating. This proactive approach indicates confidence in the future of Zcash.
In conclusion, the record hashrate reflects a robust mining environment, which is crucial for the security and stability of the Zcash network.
Net Buying Pressure and Market Positioning
On the perpetual exchange Hyperliquid, ZEC was one of the few major assets to record net buying pressure of approximately $33.73 million, contrasting sharply with Bitcoin, which faced over $506 million in net sales. The open interest for ZEC stood at about $368 million across roughly 7,190 traders, with an annualized funding rate of around 40.77%, nearly four times that of Bitcoin and Ethereum.
However, this positioning carries risks, as overcrowded long positions can be quickly unwound if momentum wanes. ZEC's price movement caps a long-term upward trend, having marked a low of around $185 in February before climbing to approximately $688 in May, the highest level since late 2025. This rise coincides with a more favorable regulatory environment, as the SEC concluded its investigation into the Zcash Foundation in January, and Grayscale initiated the conversion of its Zcash trust into a spot ETF.
In summary, Zcash is experiencing significant net buying pressure, but traders should remain cautious of potential risks associated with crowded positions.
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