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Grayscale flags Zcash privacy case as ZEC outperforms

Grayscale said Zcash’s sub-1% share of Bitcoin’s market cap suggests upside, and it projected ZEC could be worth more than $4,000 if it reached 5% of BTC’s market capitalization.

Reported · Written up by our desk · Market Structure

Grayscale says Zcash could develop into a more serious challenger to Bitcoin’s dominance among digital assets as demand for financial privacy grows, according to a new research report carried by Cointelegraph.

Grayscale head of research Zach Pandl argued that ZEC’s “second mover advantages” stem from its ability to shield transaction information, which the firm said could become increasingly valuable as AI systems improve at analyzing financial activity at scale. Pandl also pointed to the broader market context, including ZEC’s about 19-fold rise over the past year.

Even after that run, Grayscale said Zcash still trades at less than 1% of Bitcoin’s market capitalization, framing the gap as room for additional upside if Zcash captures market share. The report also cautioned that Zcash remains a high risk investment, with further gains potentially volatile and uneven, noting that Bitcoin’s liquidity and entrenched network remain major defenses.

Cointelegraph also cited an expansion of interest in the Zcash ecosystem through Cypherpunk Technologies. It said the Nasdaq-listed privacy technology company acquired a mining fleet from Winklevoss Capital in a $33.33 million equity-based transaction, and that the operation is producing about 4.2 GSol/s of Equihash hashrate, roughly 18% of the Zcash network’s total computing power.

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