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Zcash (ZEC) has performed remarkably in 2025, with a year-to-date increase of over 1,000%[2], far surpassing mainstream cryptocurrencies like Bitcoin and Ethereum. Other data also show that ZEC has risen approximately 600% throughout the year[4], demonstrating strong market performance, and has become a leading asset in the privacy coin sector, surpassing Monero in market capitalization[2].
The adoption rate of concealed transactions has significantly increased, with about 30% of ZEC transactions now utilizing concealed pool protection[2], and 20%-25% of the total supply held in concealed addresses[2]. This indicates a growing demand among investors for privacy protection features.
Significant breakthroughs have been made on the technical front. Zcash launched the Zashi 2.0.3 update, setting concealed transactions as the default option and introducing the CrossPay feature, allowing users to transfer ZEC privately to other blockchains like Solana and Ethereum without manual bridging[1]. The Ztarknet project has shown significant progress, with preliminary tests indicating a capacity to handle 1,200 transactions per second, far exceeding the approximately 50 transactions per second level in 2024, and protocol layer upgrades have reduced proof generation time by about 40%[1]. Additionally, Zcash is gradually migrating its old C++ node software (zcashd) to the Rust-based Zebra node, expected to be completed in the first quarter of 2026, with testnet showing an average block propagation delay reduction of 22%[1].
Institutional recognition is increasing. Grayscale has submitted an application to the U.S. Securities and Exchange Commission to convert its Zcash trust into a spot ETF, which will become the first Zcash exchange-traded fund in the U.S., marking institutional-level recognition of privacy coins by investors[2].
In terms of short-term market outlook, ZEC has recently fluctuated in the $390-$405 range[3], and technical indicators show that the relative strength index has broken 50, indicating that buyers are controlling the price trend[5]. Analysts predict that ZEC may test the $410 resistance level, but regulatory risks and market sentiment still need to be closely monitored[3].
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