Zcash Surge: Galaxy Digital's Claims vs. Market Reality

Coin circle information 2025-11-07 06:05 11 Tronvault

Okay, let's talk about Zcash. It's up 700% since September. Seven. Hundred. Percent. In crypto, that's practically Tuesday, but still, it's worth digging into why.

Decoding the Zcash Rally: Privacy or Pipedream?

The narrative being pushed is that Zcash is the "encrypted Bitcoin," a return to cypherpunk ideals in a world of increasing on-chain surveillance. Galaxy Digital is all over this, pointing to increasing regulatory pressure on Bitcoin privacy tools like CoinJoin, and the fact that over 30% of the Zcash supply is now shielded (hidden from public view). They're saying it's a flight to privacy. Zcash Surging on 'Cypherpunk Principles' as Bitcoin Alternative: Galaxy Digital

But let's be real. Crypto narratives are like weather vanes – they spin with the slightest breeze of hype. Is this a genuine shift towards privacy, or just a coordinated pump, as economist Lyn Alden suggested?

The core argument hinges on Zcash's "shielded transactions," which use zero-knowledge proofs to obscure the flow of funds. The bigger the "anonymity set" (the pool of shielded transactions), the harder it is to trace those transactions. Makes sense. More people hiding in a crowd makes it harder to pick one out.

But here's where I start to raise an eyebrow. Galaxy Digital highlights the Zashi wallet as making private transactions easier. Okay, good UX is important. But ease of use doesn't magically create demand. And while 30% shielded supply sounds impressive, what was it before? If it was, say, 28% last month, that's hardly a revolution. It's a blip. The key question is what is the rate of increase, and what's driving that? The reports are suspiciously silent on that.

The Whale Factor: Following the Money

What's more interesting is the data on inflows and outflows. One report notes a massive drop (over 91%!) in exchange inflows, suggesting that retail-driven selling pressure has subsided. The Chaikin Money Flow (CMF) indicator is also flashing green, indicating renewed buying momentum from large investors and whales.

Zcash Surge: Galaxy Digital's Claims vs. Market Reality

See, this is the kind of signal that gets my attention. It suggests that this rally isn't just retail investors chasing a hype cycle. It's being driven by big money. And big money doesn't move without a reason. Now, what that reason is is the million-dollar question.

I've looked at hundreds of these charts, and the correlation between whale activity and price pumps is undeniable. (Though, as always, correlation doesn't equal causation.) Are these whales genuinely concerned about privacy? Or are they simply capitalizing on the narrative to drive up the price and dump their bags on unsuspecting retail investors?

The On-Balance Volume (OBV) data supports the "genuine volume" theory, showing that the rally is backed by actual accumulation, not just speculation. But OBV can be manipulated, especially in smaller-cap coins like Zcash (market cap of $6.5 billion, according to CoinGecko). Zcash Price Rally To Continue Without Dips? Here’s Why

And here's the part that I find genuinely puzzling. If this rally is all about privacy, why are other privacy coins like Monero and Dash only up 130% and 400% respectively? (still significant, but nowhere near Zcash's 700%). Are they just not as good? Less "sexy" from a marketing perspective? Or are there other factors at play?

It's also worth noting the regulatory headwinds. The EU is considering banning privacy coins on exchanges. The US Department of Justice, while appearing to back off some cases, is still actively prosecuting individuals involved in privacy-enhancing tools. This isn't exactly a risk-free environment for privacy-focused crypto.

So, What's Really Going On Here?

The privacy narrative is compelling. The whale activity is intriguing. But the lack of clear data on the actual adoption of Zcash's privacy features, combined with the regulatory risks, makes me deeply skeptical. Is Zcash a legitimate privacy haven? Maybe. But it's far more likely that this is a confluence of factors: a good narrative, some whale manipulation, and a dash of FOMO from retail investors. Until I see concrete data on sustained, organic growth in shielded transactions, I'm calling this one a pump.

Tags： Zcash

Zcash Surge: Galaxy Digital's Claims vs. Market Reality

Decoding the Zcash Rally: Privacy or Pipedream?

The Whale Factor: Following the Money

So, What's Really Going On Here?

Trump's rx.gov Deal: Lower Prices and Expanded Access?

TTD Stock: Earnings Imminent – What We're Watching

Tag list