Over the past two weeks, the price of Zcash (ZEC), known for its focus on privacy, has surged more than 325%, reaching $230 on October 10 — its highest level since 2022. The main catalyst was the launch of the Zcash Trust by Grayscale, offering the asset to accredited U.S. investors.

Despite the rapid growth, CryptoQuant analyst Burak Kesmeçi warns against excessive optimism. According to him, the ZEC futures market shows a sharp spike in retail trader activity, which usually indicates short-term speculative waves rather than sustainable trends. Kesmeçi noted that such surges often precede local price peaks and subsequent corrections. For a long-term uptrend, he said, inflows into the spot market and institutional interest are required.

The rally in ZEC also fueled demand for other privacy coins such as Dash and Railgun. Over the past week, Railgun’s price has risen nearly 230%, while the total market capitalization of privacy-focused cryptocurrencies has reached $12.7 billion.

Some experts link this trend not only to financial events but also to growing global debates over digital privacy. In Europe, the “Chat Control” bill – which proposes using AI to monitor private communications – has sparked major controversy. Community members believe such initiatives drive demand for technologies that can guarantee anonymity.

Former White House adviser and Zcash advisory board member Tor Torrens emphasized that in an era of increasing censorship, privacy is becoming ever more valuable. He noted that technologies like Zcash help users protect their actions online, and that the current rally is just the beginning of a broader movement.

Despite optimism, regulatory risks remain high. Starting in 2027, the European Union will enforce new anti-money laundering (AML) rules banning anonymous crypto wallets and privacy coins such as Monero and Zcash. This could limit their legal use in the region.

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