Zcash has drawn renewed speculative attention ahead of its upcoming November halving, with traders positioning themselves around the privacy coin narrative. Despite limited on-chain growth, endorsements from prominent investors and revived debates about privacy have fueled market activity, Decrypt was told.
The rally’s sustainability largely depends on post-halving sentiment and whether user adoption can extend beyond short-term speculation, according to one expert. Zcash has surpassed its 2021 peak following a 30-day triple-digit rally, driven by the convergence of speculative hype and a renewed focus on privacy.
Over the past month, Zcash’s price climbed from a low of $54 to around $372, positioning it as one of the market’s top performers. This marks an 11.5% increase compared to its May 8, 2021, closing price of $319. However, the asset remains down 88% from its all-time high of $3,191.93 set nearly nine years ago, according to CoinGecko data.
The market’s underlying volatility and bullish sentiment were reflected in the predictions market Myriad—owned by Decrypt’s parent company DASTAN—where the chance of Zcash hitting $369 was validated after the token reached a high of $374.4 on Sunday.
Zcash’s recent rise can be attributed to a “perfect storm of catalysts,” including the upcoming November halving, renewed interest in privacy coins amid rising surveillance concerns, and a viral $10,000 price call from Arthur Hayes, Shivam Thakral, CEO of BuyUCoin, told Decrypt.
The halving, expected on November 18, will reduce the miner’s block reward by half, from 3.125 to 1.5625 ZEC. Initial drivers of the volatile breakout in early October included endorsements from prominent investors such as Naval Ravikanth and Mert Mumtaz, ex-Coinbase engineer and CEO of Helius.
Additionally, Grayscale’s decision to allow eligible investors exposure to the ZEC token has helped propel the token’s uptrend in the second half of October, Decrypt previously reported.
Renewed interest in privacy tokens has also lifted the broader sector. Monero and Dash gained 9.1% and 12.5%, respectively, over the past week as traders rotated into older, anonymity-focused assets.
“Privacy is back in focus,” Thakral added, as global regulations tighten and digital surveillance debates intensify. “Zcash, despite being an older coin, offers a clear, simple privacy narrative, and with its halving near, traders found an easy, liquid way to express that theme.”
Still, Thakral cautioned that the rally appears to be driven more by speculation than by fundamental growth, citing a limited increase in “shielded transactions.” The next leg depends on how miners and investors react post-halving, and whether the privacy narrative can sustain real user growth beyond pure speculation or trigger a sell-the-news reversal, he said.
https://decrypt.co/346032/zcash-2021-peak-traders-bet-privacy-revival