1. Why is everyone suddenly talking about Zcash in 2025
After several years of being a 'dead coin, barely hanging on,' ZEC suddenly:
– grew 10 times in a few weeks;
– received a record influx of coins in the shielded pool (4–4.5 million ZEC, 20–30% circulation);
– became the main privacy asset of the cycle, sometimes surpassing Monero in market cap.
The main trigger: halving in November 2025 → sharp reduction in selling pressure.
This coincided with a deficit, decreasing liquidity on exchanges, and a resurgence of interest in privacy against the backdrop of new regulatory bans in the EU.
2. Technical privacy of Zcash: why it is considered the strongest
2.1. zk-SNARKs
Zcash is not 'Bitcoin with a mixer'.
It is a full-fledged zero-knowledge proof system that hides:
– the sender
– the recipient
– the amount
– the structure of the transaction
2.2. Types of addresses
– t-address — a completely transparent area (like BTC).
– z-address — a completely encrypted area.
Highest privacy → only z→z routes.
3. But… the privacy of Zcash is NOT limitless
3.1. Optional privacy
Most users historically did t → z → t, and this almost nullifies anonymity.
3.2. Chainalysis / Elliptic have long 'seen' Zcash
They cannot decrypt z→z, but they can relate patterns around them.
3.3. KYC — the main enemy of anonymity
Bought ZEC on CEX → the state already knows:
– who you are
– when you bought
– how much was deposited/withdrawn
And it doesn’t matter that there were z-transactions in between.
3.4. IP addresses, behavior, recurring amounts
Most 'de-anon' events in private coins happen off-chain.
4. Regulators: why Zcash is on their radar
EU: effective ban on privacy coins
By 2027, ZEC/XMR cannot be legally listed on EU exchanges.
USA: does not ban the asset, but suffocates its infrastructure
FinCEN promotes a rule that criminalizes:
– mixers
– complex patterns of anonymization
– privacy tools
They do not need to ban ZEC. It's enough to suffocate entry/exit points (exchanges, banking gateways).
5. So why is ZEC pumping? (actual drivers)
🔸 Halving
Decreased issuance → less pressure on miners.
🔸 Capital rotation
After the BTC movement, there is always a 'search for the next narrative'.
In this cycle, privacy = a 'fresh' sector.
🔸 Regulatory pressure
Paradox: bans and AML regulations… increase interest in privacy.
🔸 Thin liquidity
ZEC has not been a hot asset for years → low liquidity → easy to pump.
6. Is this a 'special operation' to distract from BTC? No.
– the USA does not need to pump ZEC to control the market
– BTC is already fully transparent and integrated into financial institutions (ETFs, custody)
– The main weapon of the USA: stablecoins and exchange regulation, not altcoins
– The rotation into privacy is typical market behavior, not a conspiracy
7. Practical implications for the trader
7.1. If your goal is privacy
ZEC can be maximally effective if:
– DO NOT use exchanges with KYC
– only use z→z
– avoid recurring amounts
– keep OPSEC at a high level (VPN/Tor, p2p, cold wallets)
7.2. If you are a trader
ZEC is:
narrative asset
issuance deficit
strong technical foundation
but at the same time:
– high regulatory risk
– low liquidity
– the possibility of deep corrections after a pump
BTC = transparent digital collateral of the system
ZEC = private, but niche tool with political risk
ZEC — a supplement, not an alternative to BTC
The main conclusion
Zcash is not 'the new Bitcoin'. It is a new fight for privacy.
If you know how to use privacy tools
— ZEC can provide what BTC does not.
If you can't — it will give the illusion of privacy and risks from regulators.
And the market?
The market just plays out the narrative. As always.
