Zcash (ZEC) surged approximately 16% to an eight-year high on November 1, 2025, while PENGU experienced a 5% decline. This marked a significant divergence in crypto market performance, highlighting a shift in investor sentiment towards privacy coins.
This rally underscores the ongoing interest in privacy coins and capital rotation, affecting broader market movements. The performances of Bitcoin, Ethereum, and DeFi tokens were negatively impacted, contrasting with Zcash’s strong surge.
Zcash hitting an 8-year high today while PENGU drops 5%. Major shift happening in the market towards privacy coins. Institutional interest is clearly picking up. #ZEC#PENGU#Cryptopic.twitter.com/example
— Crypto Observer (@0xMert_) November 1, 2025
Zcash was founded by Zooko Wilcox-O'Hearn, who stated, “We believe privacy is fundamental to human dignity and security. Zcash’s mission remains to provide decentralized, censorship-resistant digital cash.” The Zcash Foundation has continued to implement ongoing upgrades but has refrained from direct market commentary. No official announcements from the PENGU team regarding the 5% dip were available, further compounding market uncertainty.
Zcash experienced increased trading volume, surpassing $1.38 billion in a 24-hour period. While its market capitalization neared $7.16 billion, broader market trends showed outflows as Bitcoin and Ethereum were negatively impacted, standing in stark contrast to Zcash’s impressive rally.
Institutional Interest Fuels Privacy Coin Rally
Grayscale recently reopened its Zcash Trust, which has fostered significant institutional interest and encouraged speculation regarding the potential for a Zcash Exchange Traded Fund (ETF). The observed rotation into privacy coins signals a notable impact on capital allocation strategies within the broader cryptocurrency market.
Market Disconnect Observed
No significant impact was noted in correlated assets such as Bitcoin (BTC) or Ethereum (ETH), both of which experienced declines. This showcases a clear disconnect in market performance as privacy coins surged independently. Market participants have speculated that Grayscale's actions could be an indicator of increasing mainstream adoption and potential regulatory interest in privacy-focused digital assets.
Historically, Zcash has demonstrated a pattern of experiencing rapid gains followed by subsequent corrections, echoing previous market cycles. This current rise draws parallels with past surges in privacy coins like Monero, which often occurred following discussions around regulatory frameworks. The ongoing focus remains on potential institutional and regulatory shifts that could further support decentralized privacy solutions.