Zcash Defies Market Trends: Shielded Supply Hits 5.1 Million ZEC Amid Hashrate Surge

Why is Zcash climbing when the rest of the crypto market seems to be falling? While Bitcoin, Ethereum, and Solana struggle, Zcash (ZEC) stands out with a 13% rise, hitting about $618. Is something brewing on-chain that's fuel for this rally?

The Numbers Behind Zcash's Rise

Let's start with the raw data. Zcash's shielded supply, a measure of ZEC held in private pools that keep transactions under wraps, has soared to a staggering 5.1 million ZEC. This is a record high. The newest pool, Orchard, alone accounts for roughly 4.5 million ZEC. The older pools, Sapling and Sprout, contribute a far smaller sum, sitting at about 592,000 and 25,000 ZEC respectively.

Miners are also more committed than ever. The Zcash network's hashrate has hit an all-time high of 16.3 GH/s. It surpasses previous peaks like 11 GH/s in 2022 and 10 GH/s in 2024. High hashrate signals that miners are betting on the future profitability of mining ZEC.

Why This Matters Now

Why does this matter? Well, the surge in shielded supply shows Zcash is being used for its core purpose: privacy. Multicoin Capital's big ZEC investment in 2026 framed privacy as a safer bet against the increasing scrutiny on transparent holdings.

Regulatory clarity adds another layer. The U.S. SEC closed its investigation into the Zcash Foundation in January, and Grayscale wants to convert its Zcash trust into a spot ETF. That's a big regulatory thumbs-up.

The November 2024 halving, which slashed ZEC issuance, tightened supply and encouraged miners to ramp up their operations. But it's more than just numbers. It's about what those numbers signal: buoyed confidence in Zcash’s value proposition.

What Investors Are Thinking

So, what are traders and insiders saying? On the Hyperliquid perp exchange, ZEC is one of the few major tokens showing net buying pressure, with around $33.73 million in buys. Meanwhile, Bitcoin saw a net selling of over $506 million. This tells a story of where smart money might be flowing.

Open interest in ZEC stands near $368 million among about 7,190 traders. It’s more than what you’d expect for a token that's not a top-tier name. And the funding rate? An annualized 40.77%, which is almost four times what Bitcoin and Ethereum are seeing. That’s conviction. But here's the flip side: it could also be a sign of an overheated market if sentiment shifts.

What Comes Next for Zcash

Where do we go from here? A few catalysts could shape the road ahead. First, keep an eye on shielded supply. If it keeps climbing, ZEC maintains its momentum. Second, watch the buying pressure on exchanges. Sustainable demand could keep Zcash buoyant even if the broader market remains rocky.

But here's a question: How long can this momentum last? The high funding rates suggest traders are willing to pay a premium for ZEC exposure. If those rates start to tumble, it could be the first sign that the bull run might slow down.

For now, Zcash is bucking the trend, standing out as a privacy-focused cryptocurrency that's making waves. If privacy continues to gain traction and buying pressure holds, ZEC might just keep surprising the naysayers.