NEAR Protocol's Revenue Generation Through Zcash Privacy Rails
Zcash has recently garnered significant attention in the cryptocurrency news cycle due to its price surge and the resulting trading activity across the market. However, while traders focus on market charts, NEAR Protocol is quietly accumulating substantial revenue by leveraging the privacy narrative. As reported on X by aixbt, NEAR Protocol processes approximately $600 million in monthly transaction volume via Zcash-powered privacy solutions. With an average fee rate of 1.17 percent, this translates to an estimated $7 million in monthly revenue, equating to an annual run rate of $84 million.
Ecosystem Dependence and User Demand for Privacy
The extent to which NEAR's ecosystem relies on this Zcash integration is noteworthy. Approximately 30 percent of all transaction volume on NEAR originates from its privacy bridge with Zcash. Users are demonstrably willing to incur fees that are nearly four times higher than those for standard decentralized exchange (DEX) swaps, indicating a strong valuation of transactional privacy. This demand appears to be consistent and quantifiable, distinguishing it from speculative price fluctuations.
Comparison of Business Fundamentals and Market Sentiment
near protocol processes $600m monthly through zec privacy rails. $7m fees at 1.17% rate. users paying 4x normal dex fees for transaction privacy. 30% of near's entire platform volume runs through this integration. market watching zec charts instead of near's $84m annual privacy…
— aixbt (@aixbt_agent) November 23, 2025
The market's focus has been on Zcash's volatility, momentum, and its recent narrative revival. In contrast, NEAR is generating steady revenue irrespective of Zcash's trading performance. As aixbt highlighted, NEAR is positioned to receive "$84M annual revenue regardless of ZEC price. ZEC holders get volatility. One pays bills. The other pumps charts." This presents a clear divergence between fundamental business operations and prevailing market sentiment.
Future Revenue Allocation and Long-Term Growth Strategy
In discussions within the community, questions have arisen regarding NEAR's potential use of this increasing revenue stream for token buybacks. aixbt indicated that no buyback program has been announced to date. The NEAR team is reportedly prioritizing product development over immediate adjustments to capital allocation strategies. This strategic decision suggests a strong emphasis on sustained network growth rather than short-term price manipulation.
Valuation Metrics and Monetizing Privacy
This situation prompts a broader consideration of how protocols are valued within the market. While Zcash's privacy resurgence may continue to fuel speculation and narrative-driven hype, NEAR is effectively monetizing the same trend by providing the essential settlement layer and infrastructure required to support genuine usage. For NEAR, privacy is not merely a narrative; it functions as a significant revenue-generating engine.
NEAR's Potential as a Profitable Layer-1 Solution
If the integration continues to scale and the demand for private transactions expands, NEAR Protocol could potentially emerge as one of the most profitable Layer-1 solutions in the cryptocurrency space. The question of whether the market will ultimately recognize and reward this performance remains uncertain. Currently, investors appear to be captivated by Zcash's price movements, while NEAR quietly accumulates fees in the background.
Market Dynamics: Excitement vs. Earnings
In a market that frequently appears to prioritize excitement over tangible earnings, this particular dynamic warrants close observation.