Zcash Transaction Analysis
Blockchain analytics firm Arkham has introduced a new feature allowing detailed on-chain tracking of Zcash, a privacy-focused cryptocurrency. This major development enables the identification and labeling of both shielded and transparent transactions within the Zcash network.
According to Arkham, more than 53% of all Zcash transactions—representing a massive $420 billion in volume—have now been attributed to identifiable individuals and institutions. This is a notable achievement considering Zcash’s reputation for strong privacy and anonymity.
Arkham’s efforts include detailed analysis of both shielded and transparent addresses, which has long been a challenge in the crypto space. This move positions Arkham as a leader in privacy coin analytics, expanding its capabilities beyond Bitcoin and Ethereum.
Attributed Balances and Privacy Implications
The analysis went even deeper, with Arkham managing to identify approximately 48% of Zcash transaction inputs and outputs, linking them to known entities. Furthermore, around 37% of the total Zcash balances, estimated at $2.5 billion, have been mapped to wallets tied to real-world users and organizations.
This level of transparency challenges the assumption that Zcash offers complete privacy. While shielded transactions still offer a layer of protection, Arkham’s work reveals that anonymity on the blockchain is not guaranteed, especially when advanced analytics are applied.
Arkham announced the launch of Zcash on-chain tracking, labeling over 53% of Zcash transactions — including both shielded and transparent — representing around $420 billion in volume linked to identifiable individuals and institutions. About 48% of transaction inputs and outputs…
— Wu Blockchain (@WuBlockchain) December 9, 2025
Implications for Privacy and Compliance
This launch marks a significant moment in the ongoing debate between blockchain privacy and regulatory compliance. With increasing pressure from regulators worldwide, tools like Arkham’s Zcash tracking may become vital for compliance by exchanges, law enforcement, and institutional investors.
Zcash’s community, long known for advocating financial privacy, may view this development with concern. However, for regulators and risk analysts, it’s a promising tool that adds clarity to what was once considered a black box in the crypto world.