Zcash tops $1,000 as Grayscale ZCSH ETF inflows drive rally

Grayscale's ZCSH spot ETF inflows pushed ZEC to $1,023 on Sept. 4, a 20 percent single-day gain that marked the privacy token's first four-digit print since 2018.

Grayscale researchers have argued ZEC remains underpriced because AI will make blockchain surveillance cheap and routine, according to the firm's published analysis. The fund, which began trading on NYSE Arca on Aug. 25, reached a record $80.17 in Friday premarket trading, roughly 25 percent above its launch level.

The rally wiped out about $36.6 million in leveraged ZEC positions over 24 hours, with $34.5 million of that from short sellers, CoinGlass data shows. Derivatives volume jumped 113.64 percent to $6.38 billion while open interest expanded 34.97 percent to $2.16 billion. ZEC's market value climbed toward $17 billion, placing the token among the ten largest cryptocurrencies by market capitalization.

Shielded supply on the Zcash network now stands at 4.86 million ZEC, about 28.76 percent of circulating coins, reflecting growing demand for confidential transactions. Analysts identify $1,200-$1,300 as the next resistance zone, with $1,800 as a longer-term technical target, while critical support sits at $700-$800.

Miners pile in as hashrate nears record

The price surge has drawn miners into the Zcash network. Hashrate reached a record 27.9 GSol/s on Aug. 28 and currently operates at 91 percent of that peak. Bitmain's Antminer Z15 Pro, the highest-earning ASIC for Zcash, generates roughly $59.09 in daily revenue at current valuations, assuming electricity costs of $0.10 per kWh. Inventory for both the Z15 Pro and its predecessor Z15 has been depleted on Bitmain's platform, with third-party vendors offering the Z15 Pro above its $4,999 manufacturer's suggested retail price.

The influx of mining capacity cuts into per-token gains. As more miners compete for the same block rewards, network difficulty rises, squeezing margins even as ZEC trades at record levels. The dynamic underscores the tension at the heart of the rally: institutional demand via the ETF has pushed the token higher, but expanding network competition means miners' revenue gains lag the price move.

ZEC's 30-day gain of 88 percent and six-month advance of 353 percent follow a year that saw the SEC close a multi-year investigation into the Zcash Foundation and developers ship the Ironwood upgrade in July to fix a vulnerability in the Orchard shielded pool. The regulatory overhang removal and technical fixes cleared the path for the ETF-driven repricing, but the sustainability of the move now depends on whether ZCSH inflows persist as the token trades at nine-year highs.

This article is for informational purposes only and does not constitute investment advice.