Quick Summary
- ZCash (ZEC) has seen a significant surge, nearing $360, driven by increased activity in its shielded pools.
- Despite a general crypto market downturn, ZEC has outperformed other altcoins, exhibiting strong bullish momentum.
- Traders are actively shorting ZEC, though this carries extreme liquidation risks due to high open interest, particularly on Binance.
- The ZCash community remains optimistic, with some predicting a price surge to four-digit figures in the near future.
- A growing number of ZEC tokens are being moved into shielded pools, enhancing privacy for decentralized finance (DeFi) transactions, especially notable through the Zashi wallet.
ZCash (ZEC) has distinguished itself among cryptocurrencies, breaking away from the pack of altcoins and trading close to the $360 mark once again. This upward momentum is fueled by a renewed acceleration in deposits to its privacy-enhancing shielded pools.
Following a dip towards $300, the ZCash (ZEC) rally found renewed support. While many other digital assets faced setbacks, ZEC demonstrated resilience, breaking out and approaching the $360 price level. This performance positions ZEC as a high-risk asset for short sellers, with the potential for a significant short squeeze.
Driving Factors Behind ZEC’s Surge
The open interest for ZEC is nearing an all-time high, with most derivative activity concentrated on the Binance exchange. Despite recent price fluctuations, including a bounce from a local low of $288, ZEC has successfully resumed its overall bullish trend.
Community sentiment surrounding ZEC remains strongly positive, with considerable mindshare on social media platforms. Expectations are high, with many anticipating ZEC to reach four-digit prices in the coming weeks, potentially positioning it among the top-tier digital assets.
Traders Navigate Liquidation Risks in ZEC Markets
Despite the inherent risks associated with short-selling, the ZEC rally has coincided with a trend of traders making opposing bets. Over 60% of the open interest is currently held in short positions, a shift that has been evident since late September, with only brief periods showing predominantly long positions.
Liquidity for short positions has been building on Binance, extending up to the $378 mark, while liquid long positions appear less substantial. The liquidation heatmap indicates a strong potential for ZEC to experience another breakout, which could lead to the liquidation of these accumulated short positions.
Currently, there is no significant divergence between spot and futures prices for ZEC. However, spot trading volumes remain relatively modest at approximately $230 million, a contrast to the substantial daily derivative trading volumes reaching $1.2 billion on Binance.
Increased ZEC Adoption within Shielded Pools
While derivative traders speculate on ZEC’s price movements, a growing number of whales and community members are actively increasing the supply of shielded ZEC. This trend aims to enable a broader segment of decentralized finance (DeFi) to conduct transactions with enhanced anonymity.
The three most prominent shielded pools now hold over 4.9 million ZEC. The majority of these tokens have been deposited into the Orchard pool, which offers the highest level of privacy and anonymity.
🚨 ATTENTION ALL! 🚨
📊 Zcash Dashboard Update
🕒 2025-10-30 18:03:20 UTC+8
💵 ZEC/USD: $359.01
🛡 Total Shielded: 4,937,758.48573795 ZEC (↓415.77204418)
💰 Total Shielded USD ≈ $1,772,704,673.96 (↑$9,578,936.97)🌳 Orchard: 4,157,103.59920013 ZEC (↓415.77204418)
🌿… pic.twitter.com/J4e3apFLio— ZeroBits (@ZBitUSD) October 30, 2025
Shielded ZEC, accessible through the Zashi wallet, has established a foundation for anonymous decentralized exchange (DEX) swaps. This functionality allows users to convert assets into ZEC and then back into other cryptocurrencies while obscuring their on-chain ownership trail.
The Zashi wallet’s accessibility represents a significant advancement in making anonymous trading more readily available, thereby adding another powerful tool for engaging in DEX activities.
Interest in ZEC surged, notably after investor Naval Ravikant’s repeated mentions of the cryptocurrency. However, mainstream adoption appears less probable in the current landscape. With its shielding capabilities and integration with protocols like Near, ZEC primarily appeals to existing crypto enthusiasts familiar with in-wallet trading and DeFi operations. ZEC is not yet positioned for inclusion in ETFs or as a corporate asset.
Overall, privacy-focused cryptocurrencies are drawing considerable attention, with their combined market valuation expanding beyond $21 billion. While other privacy coins like Monero (XMR) and Litecoin (LTC) have attempted similar upward movements, ZEC has demonstrated superior performance compared to its peers in the privacy coin sector.
Final Thoughts
ZCash (ZEC) is experiencing a notable price resurgence, driven by increased usage of its shielded pools and strong community sentiment. While short-term trading sentiment presents risks, the underlying technology supporting enhanced privacy continues to attract dedicated users and investors within the DeFi space.