Zcash (ZEC) has crossed the $500 mark, a level not seen since 2018, as interest in its derivatives market reaches an all-time high. The resurgence of this privacy-centric cryptocurrency signals a renewed focus on digital assets that emphasize anonymity and decentralized value transfer.
Market Data and Capitalization
Market data indicates that ZEC's open interest in futures has surged to historic highs, with total positions exceeding $770 million. This spike suggests increased trader participation and liquidity on major exchanges. Concurrently, Zcash's market capitalization has surpassed the $8 billion threshold, allowing it to overtake several other mid-cap peers. Furthermore, more than 30 percent of ZEC's total supply is now held in shielded addresses, a feature that limits the circulation of visible supply and contributes to price appreciation.
Social Media Sentiment
EVERYONE WANTS THE NEXT BITCOIN! š¤
But while the market stared at $BTC, $ZEC quietly exploded +1,200% in just 90 days, breaking above $500.
Same 21M supply cap as Bitcoin. Same scarcity story. Different spotlight.
Is $ZEC the most undervalued comeback of this cycle? š pic.twitter.com/n9o1dyPKmr
ā Wise Advice (@wiseadvicesumit) November 6, 2025
Drivers Behind the Breakout
Zcash appears to be experiencing a boom driven by three primary factors. Firstly, there is an increasing "privacy premium" in crypto markets, where investors and traders are drawn to assets offering transaction anonymity amidst heightened regulatory scrutiny. The underlying zero-knowledge proof technology keeps ZEC relevant in this niche.
Secondly, heightened derivatives activity has contributed to increased market momentum and volatility. The rising open interest signifies greater inflows into leveraged positions, indicating that both retail and institutional traders are betting on further price increases. Lastly, the growing proportion of coins held in private pools has created a supply squeeze, meaning that even moderate demand can result in a significant price response.
Technical and Market Outlook
Technically, ZEC has successfully broken through the $500 resistance level, a price point where it had been stagnant for nearly a decade. Analysts are now suggesting that the next target zone could be between $575 and $580, assuming the bullish momentum continues.
$ZEC is getting Ready for another Bullish Rally..š
New All time High incoming.. š£š #Crypto #ZEC #ZECUSDT #Zcash pic.twitter.com/SqzIoUpdrB
ā Captain Faibik šŗ (@CryptoFaibik) October 26, 2025
However, the Relative Strength Index (RSI) suggests that the asset is approaching overbought territory. Additionally, high funding rates indicate that long positions may be overheated. Key support levels are currently identified at $480 and $360, which could serve as potential pullback areas. Overall, ZEC's long-term technical structure remains positive, although near-term volatility is anticipated as traders take profits. The sustainability of this trend will depend on future derivative flows and on-chain activity.
Conclusion
Zcash's ascent above $500 signifies a renewed spotlight on privacy coins and a resurgence of excitement in crypto markets. The record levels of open interest and tightening supply suggest growing confidence in ZEC's long-term relevance. However, given the increasing leveraged positioning and market exuberance, caution is advised. Whether this marks the beginning of a sustained uptrend or a short-term surge remains to be determined by derivative flows and on-chain activity in the coming weeks.