Zcash Surges 45% in One Week: Why Privacy Coins Are Back and What November’s Halving Means

Zcash (ZEC) delivered one of the week’s strongest performances, rallying 45% to reach $344.32 as of October 30, 2025. More impressively, ZEC has surged 950% from its September lows, making it one of 2025’s top-performing major cryptocurrencies. With 4.5 million ZEC now held in shielded pools (privacy-enabled wallets), Grayscale’s Zcash Trust crossing the $137 million milestone, and a highly anticipated halving event approaching in November 2025, privacy coins are experiencing a resurgence that caught most traders off guard.

For months, privacy-focused cryptocurrencies faced intense regulatory scrutiny and exchange delistings. Yet ZEC’s recent performance suggests the market is reassessing privacy coins’ value proposition—and positioning ahead of supply-side catalysts that could drive sustained appreciation.

1.The Numbers: Zcash’s Remarkable 2025 Rally

Let’s start with the data that demands attention:

Price Performance:

• Weekly gain: +45% to $344.32
• From September lows: +950% surge
• Year-to-date: Significant recovery after early-year weakness

Institutional Interest:

• Grayscale Zcash Trust: Crossed $100M milestone, now at $137M
• This represents significant institutional capital allocating specifically to ZEC exposure
• Grayscale products typically attract accredited investors, family offices, and institutional portfolios

On-Chain Activity:

• 4.5 million ZEC in shielded pools (privacy-enabled wallets)
• Demonstrates actual usage of Zcash’s core privacy features, not just speculative trading
• Shielded pool growth indicates users value and trust ZEC’s privacy technology

Market Positioning:

• ZEC outperformed among Layer 1 blockchains on October 30
• Trading volume increased substantially, indicating renewed trader interest

2.Why Privacy Coins Are Experiencing a Resurgence

For most of 2023-2024, privacy coins faced existential threats: regulatory crackdowns, exchange delistings, and declining user interest as DeFi and NFTs captured attention. So why is ZEC surging now?

2.1 Factor 1: Regulatory Clarity Is Improving

The U.S. crypto regulatory landscape has shifted dramatically under the Trump administration. With the passage of the CLARITY Act (defining when crypto assets are commodities vs securities) and the GENIUS Act (creating stablecoin frameworks), there’s growing confidence that privacy features won’t automatically trigger securities classification or blanket prohibitions.

While privacy coins remain controversial, the trend is toward rule-based regulation rather than enforcement-by-litigation. This creates space for compliant privacy solutions to operate, reducing the existential risk that plagued the sector.

2.2 Factor 2: Growing Demand for Financial Privacy

As blockchain surveillance tools become more sophisticated and governments increase monitoring of crypto transactions, users are rediscovering the value of privacy. Zcash offers optional privacy through shielded transactions—users can choose when to use privacy features, making it more flexible than mandatory-privacy chains like Monero.

The 4.5 million ZEC in shielded pools demonstrates real demand for privacy, not just speculation. Users are actively choosing to shield their transactions, indicating ZEC’s core utility is functioning as intended.

2.3 Factor 3: Institutional Validation Through Grayscale Trust

Grayscale’s Zcash Trust crossing $137 million is significant institutional validation. Grayscale products require extensive legal and compliance review before launching. Their continued support for ZEC—and growth to $137M AUM, signals institutional investors view ZEC as a legitimate, long-term holding despite privacy coin headwinds.

This institutional interest creates a supply sink: ZEC bought by Grayscale is effectively removed from circulating supply, reducing selling pressure and supporting price appreciation.

2.4 November 2025 Halving: The Supply Shock Coming

The most significant catalyst ahead for ZEC is its November 2025 halving event, which will reduce block rewards from 3.125 ZEC to 1.5625 ZEC per block, a 50% reduction in new supply issuance.

2.5 Why Halvings Matter:

Halvings are supply-side shocks that reduce the rate at which new coins enter circulation. If demand remains constant (or increases) while supply issuance falls 50%, economic theory suggests price should rise to reach equilibrium.

Bitcoin’s halvings have historically preceded major bull runs:

• 2012 halving → 2013 rally to $1,100
• 2016 halving → 2017 rally to $20,000
• 2020 halving → 2021 rally to $69,000

While Zcash’s market is smaller and dynamics differ, the supply reduction creates similar economic pressure. Currently, approximately 3.125 ZEC are issued every block. After the halving, this drops to 1.5625 ZEC,meaning miners have 50% fewer coins to sell daily to cover operational costs.

2.6 Historical Context

Zcash’s previous halving occurred in November 2020, when block rewards dropped from 6.25 to 3.125 ZEC. Following that halving, ZEC rallied from approximately $50 to over $300 in the subsequent months, a 500%+ gain.

If history provides any guide, the November 2025 halving could serve as a catalyst for sustained appreciation, particularly if combined with continued institutional accumulation and improved regulatory clarity.

3.What Sets Zcash Apart From Other Privacy Coins

Zcash isn’t the only privacy-focused cryptocurrency, but it has several distinguishing characteristics:

3.1 Optional Privacy

Unlike Monero, which mandates privacy on all transactions, Zcash offers optional privacy through “shielded” transactions. Users can choose to transact transparently (like Bitcoin) or privately (using zk-SNARKs cryptographic proofs). This flexibility makes ZEC more palatable to exchanges and regulators who require transparency for compliance.

3.2 Institutional-Grade Cryptography

Zcash uses zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge), cutting-edge cryptography that allows transaction verification without revealing sender, receiver, or amount. This technology is mathematically robust and has applications beyond cryptocurrency, including digital identity and secure computation.

3.3 Founder Credibility

Zcash was founded by cryptographers including Zooko Wilcox, with early contributions from researchers at MIT, Technion, and UC Berkeley. This academic rigor and founder credibility differentiate ZEC from privacy coins that launched without comparable technical foundations.

3.4 Grayscale Support

Among privacy coins, Zcash is unique in having a Grayscale Trust product. This institutional infrastructure makes ZEC accessible to accredited investors who cannot directly purchase crypto, expanding the potential buyer base significantly.

4.Risks and Challenges: Why ZEC Isn’t Without Concerns

Despite the strong performance and upcoming halving, ZEC faces legitimate challenges:

4.1 Risk 1: Regulatory Uncertainty Remains

While regulatory clarity is improving, privacy coins remain controversial. If major jurisdictions decide to restrict or ban privacy features, ZEC could face delisting from major exchanges, limiting liquidity and accessibility.

4.2 Risk 2: Competition From Privacy-Preserving Technologies

Ethereum’s development of privacy-preserving smart contracts, Bitcoin’s Taproot upgrade enabling better privacy, and new protocols like Aleo (which combines privacy and programmability) create competition for ZEC’s niche. If users can achieve privacy on more liquid, widely-adopted chains, ZEC’s moat narrows.

4.3 Risk 3: Adoption Has Been Slow

Despite strong technology, Zcash’s adoption has lagged Bitcoin and Ethereum significantly. The 4.5M ZEC in shielded pools represents progress, but broader adoption remains limited. For ZEC to sustain long-term appreciation, usage must expand beyond a niche privacy-focused community.

4.4 Risk 4: Halving Is Already Priced In

ZEC’s 950% surge from September lows suggests traders are already positioning for the November halving. If the event arrives and price doesn’t move higher, it could trigger “buy the rumor, sell the news” profit-taking that reverses recent gains.

5.How to Trade ZEC: Strategic Approaches

Given ZEC’s recent surge and upcoming halving, traders should consider these approaches:

For Conservative Traders:

• Wait for a pullback to $280-$300 before entering
• Use tight stop-losses below $260 to limit downside
• Target profits at $400, $450, and $500 (psychological levels post-halving)

For Aggressive Traders:

• Enter near current levels ($340-$350) with scaled positions
• Use MEXC Futures with moderate leverage (5-10x) and strict risk management
• Set take-profit levels at $400 (17% gain), $500 (45% gain), and $600 (75% gain)

For Long-Term Investors:

• Accumulate positions over 2-3 weeks leading into halving
• Focus on ZEC’s long-term privacy thesis rather than short-term price action
• Consider that halving supply shocks often take 3-6 months to fully materialize in price

Risk Management:

• Never allocate more than 3-5% of portfolio to a single privacy coin
• Use stop-loss orders to define maximum acceptable loss
• If ZEC breaks below $280, the bullish thesis weakens and caution is warranted

6.The Bottom Line: Privacy Coins’ Comeback Is Real

Zcash’s 45% weekly gain and 950% surge from September lows isn’t noise, it’s a signal that privacy coins are experiencing a genuine resurgence driven by improving regulatory clarity, growing demand for financial privacy, institutional validation, and an upcoming supply shock.

The November 2025 halving creates a clear catalyst that could extend ZEC’s rally, particularly if combined with continued Grayscale accumulation and broader crypto market strength. While risks remain, regulatory uncertainty, competition, and potential profit-taking, ZEC’s recent performance suggests the market is reassessing privacy coins’ value after years of neglect.

For traders and investors who understand the risks and manage position sizing accordingly, ZEC represents one of the more compelling narratives in Q4 2025. Whether you’re trading the halving catalyst or investing in privacy technology’s long-term potential, Zcash deserves attention as one of the year’s most dramatic comeback stories.

Disclaimer: This material does not constitute advice on investments, taxes, legal matters, finance, accounting, consulting, or any other related services, nor is it a recommendation to buy, sell, or hold any assets. MEXC Learn provides information for reference only and does not constitute investment advice. Please ensure you fully understand the risks involved and invest cautiously. All investment decisions and outcomes are the sole responsibility of the user.