Investors are becoming increasingly cautious as they allocate capital to altcoins. This change means that the current altcoin season is proceeding with more selectivity than before. Zcash (ZEC) and other privacy coins remain a priority even amidst the prevailing market fears.
According to the latest data and reports from Grayscale, the sentiment of ZEC holders remained stable in December. Some indicators have even turned more positive.
Zcash shield pool breaks all-time high.
According to data from zkp.baby, the amount of ZEC locked in the shield pool has reached an all-time high. This figure has surpassed 5 million ZEC, accounting for about 30% of the total supply.
The shield pool is a core function of Zcash. Users can convert ZEC from a transparent address to a shielded address. This mechanism ensures higher privacy.
In particular, the amount of ZEC in the shield pool has remained around 4.8 million throughout November. This stability persisted even when the price of ZEC briefly dropped by nearly 60%. This data suggests that ZEC holders have maintained long-term convictions while ignoring short-term volatility.
In December, the price of ZEC rebounded by more than 70%. At the same time, the shield pool hit a new all-time high. This trend has further strengthened investor confidence. This background can explain why Arthur Hayes, former CEO of BitMEX and a well-known investor, has a bullish outlook on ZEC.
“The tears of the bear will become my sustenance. The first target for ZEC is $1,000.” – Arthur Hayes
This achievement of an all-time high shows that interest in Zcash is increasing. Additionally, it suggests that capital is moving into digital assets that prioritize privacy and security.
Grayscale focuses on six privacy altcoins.
Grayscale's Q4 2025 report further solidified Zcash's status. Grayscale is one of the largest cryptocurrency investment firms in the world.
The report described the quarter as a correction phase following strong growth. Nevertheless, the privacy coin sector showed remarkable performance.
Grayscale highlighted six privacy-focused altcoins. Zcash led not only in the privacy sector but also among the top 20 tracked by Grayscale.
“The top 20 coins in the fourth quarter included several privacy-related tokens such as Zcash (ZEC), Monero (XMR), Dash (DASH), Decred (DCR), Basic Attention Token (BAT), and Velodrome (BDX).” – Grayscale report
According to a recent BeInCrypto report, Monero (XMR) is maintaining a stronger on-chain usage compared to ZEC. Investors who missed the rally of XMR and ZEC may want to pay attention to smaller privacy coins like DASH, DCR, and BAT.
Grayscale emphasized that institutional investors are shifting to assets that provide stronger privacy. As data breach scandals continue, this trend is becoming more pronounced.
The report projected that the privacy coin market would continue to exhibit strong growth through 2026. Integration with DeFi and Web3 applications is expected to drive this expansion.