Zcash surged 370% to $1,200 over three months following a privacy pool vulnerability fix and Grayscale ETF launch with $34.4M inflows.
Macro & Markets ·
Zcash reached $1,200 in early September, marking a 370% surge from a June low of $260. The recovery followed the protocol's patch of a vulnerability in its Orchard privacy pool that had briefly exposed the asset to concerns about potential token counterfeiting. The price movement has elevated ZEC's market capitalization above $20 billion, according to CryptoPotato.
Grayscale's launch of a Zcash ETF on August 25 coincided with the asset's most significant rally phase and has already attracted $34.4 million in net inflows. The timing of this institutional product arrival has prompted questions about whether newly available ETF structures are redirecting capital toward previously overlooked digital assets. Additionally, the surge triggered $46 million in short liquidations over 24 hours, the largest among all cryptocurrencies during that period.
Chart analysts have identified a "Cup & Handle Pattern" in ZEC's weekly price action and note that the asset has broken key resistance levels associated with this formation. Some commentators suggest targets near $2,200 if the pattern follows its typical trajectory, though such projections remain speculative. What remains unclear is whether the ETF's inflows will sustain demand or whether recent whale activity—including a transfer of a major accumulated position to an exchange—signals profit-taking ahead.