Bearish bets on Zcash turned disastrous Tuesday as the privacy token surged nearly 30% to $543, making ZEC-tracked futures the second-largest liquidation event behind bitcoin. Volume exceeded $1.3 billion, with $60 million in short positions wiped out.
The rally followed Multicoin Capital's disclosure that it has been building a significant ZEC position since February. Partner Tushar Jain framed the thesis around government wealth seizures, arguing Zcash's shielded pool offers a private refuge from transparent blockchain tracking by tax authorities.
Roughly 30% of all circulating ZEC-about 5 million coins-now sits in shielded addresses, up from 8% in early 2024. The shielded pool uses zero-knowledge cryptography to hide sender, recipient, and transaction amounts, making it increasingly attractive as AI tools and quantum computing threaten privacy on transparent blockchains.
ZEC now trades at $543, up more than 1,400% on the year, but still below its November 2025 high near $750. Next resistance sits in the $600-$650 zone. The key metric to watch: shielded supply rising alongside price, suggesting real adoption rather than speculative froth.