Headline: Zcash leads privacy-coin surge — but volatility and mixed trader sentiment cloud the road to $1,000 Zcash (ZEC) emerged as the breakout privacy token of 2025’s second half, but its journey has been anything but linear. While the broader crypto market gave back much of its early-year gains, privacy coins dominated both returns and conversation in Q4, with ZEC at the center of the story. Why privacy coins mattered in Q4 - Asset manager Grayscale says privacy-themed tokens filled the top 20 performance slots in Q4, led by ZEC, Monero (XMR), and Dash (DASH). - Grayscale also noted that these tokens “dominated in mindshare,” linking price strength to narrative momentum and rising real-world usage across networks such as Zcash and Dash. Q4 performance snapshot (per Grayscale) - ZEC: +600% (Q4) - DASH: +218% - XMR: +48% Volatility: dramatic upside, sharp pullbacks Zcash’s price action typified risk and reward. After an explosive October rally that topped 1,000% and pushed ZEC to a record of $751, the coin plunged roughly 50% to about $320 by early December. At press time it had recouped some losses and was trading near $539 — still cited as roughly 35% shy of its ATH. Can ZEC double to $1,000? Optimists point to a potential supply squeeze. Pseudonymous analyst Anonymist argues that of Zcash’s roughly 16 million coins in circulation, about 5 million are “shielded” and not freely tradable — leaving about 10 million available. As prices rise and exchanges hold fewer free coins, he estimates tradable supply could fall to around 8–9 million by the time ZEC reaches $1,000, supporting higher prices. But market signals are mixed: - Prediction market Polymarket was pricing about a 30% chance of ZEC hitting $1,000. - Derivatives data from CoinGlass showed about 70% of Binance’s top traders were shorting ZEC, indicating notable bearish positioning among sophisticated players. - Meanwhile, growing accumulation in spot markets could still drive a near-term recovery. The bigger picture Many industry figures, including partners at Andreessen Horowitz (a16z), have framed privacy as “the most important moat in crypto.” If that narrative continues to gain traction into 2026, privacy-focused tokens like ZEC could see sustained interest — though history shows gains can be rapid and reversal-prone. Bottom line Zcash was one of 2025’s most eye-catching crypto stories: massive gains, surging attention and usage, but also intense volatility and divided market sentiment. Whether ZEC can sustain a march toward $1,000 will likely depend on a combination of narrative momentum, real-world adoption, and how tradable supply dynamics evolve. Disclaimer: This article is informational only and not investment advice. Cryptocurrency trading carries high risk; do your own research before making investment decisions. © 2025 AMBCrypto (original reporting sources: Grayscale, TradingView, X/Anonymist, Polymarket, CoinGlass). Read more AI-generated news on: undefined/news

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