Svmuu News Grayscale analyst Michael Zhao stated in a report that the development of AI surveillance and on-chain transparency may drive privacy from a niche demand to a core financial function, and the crypto market is currently underpricing this possibility.
The report points out that Zcash uses zero-knowledge proof technology to hide transaction details, and its shielded transactions currently constitute the majority of on-chain activity, indicating that the demand for privacy already exists in practice. ZEC currently accounts for only about 0.3% of the $1.6 trillion cryptocurrency sector. Grayscale believes this reflects market expectations that privacy features will remain on the periphery. If this expectation changes, the upside potential could be significant.
ZEC surged to nearly $700 in late 2025 before retreating over 60%. The report also highlights risks such as regulatory uncertainty, network upgrade execution risks, and long-term risks like quantum computing. As of press time, ZEC is up 5% in the past 24 hours, trading at approximately $224.80.