Zcash (ZEC) Explodes 100% as Privateness Coin Demand Surges Amid Uptober Rally

Zcash (ZEC) has greater than doubled in worth prior to now week, as demand for privateness cash climbs throughout the broader “Uptober” rally. The coin jumped from round $50 to over $130 on October 3, reaching $135.54 at its peak, in accordance with CoinGecko.

The most recent rally pushed ZEC to its highest stage since April 2022, although it stays practically 96% under its 2016 all-time excessive of $3,193.

Over the previous 24 hours, ZEC gained 21.5%, making it the best-performing digital asset amongst main tokens. On a seven-day foundation, its worth has climbed to 133.2%, main the broader privateness coin sector.

The rally has been accompanied by a pointy enhance in exercise, with buying and selling quantity up 1,150% to $292 million. Shielded transactions, Zcash’s signature privateness function, rose 15.5% month-on-month, indicating energetic person demand relatively than purely speculative inflows.

zk-SNARK Momentum Pushes Zcash Market Cap Above $1.8B

Market contributors attribute the transfer to renewed consideration to zk-SNARK expertise, the zero-knowledge proof system that underpins Zcash’s shielded transactions. The expertise permits customers to show a transaction occurred with out disclosing particulars such because the sender, recipient, or quantity.

Zcash, initially forked from Bitcoin’s codebase, gives each clear and shielded transactions, interesting to customers who need the choice of privateness in an period of tightening oversight.

The surge additionally coincided with broader discussions round digital surveillance and central financial institution digital currencies (CBDCs).

On X, outstanding entrepreneur Naval Ravikant described Bitcoin as “insurance coverage towards fiat” and Zcash as “insurance coverage towards Bitcoin,” suggesting that ZEC gives safety towards the clear nature of the main cryptocurrency.

Mert Mumtaz, CEO of Helius and a former Coinbase engineer, argued that privateness is non-negotiable as centralized stablecoins and CBDCs develop, calling a crypto ecosystem with out non-public cash “a dystopian nightmare.”

Institutional sentiment added to the momentum. Grayscale introduced that its Zcash Belief is now open for personal placement, giving accredited buyers publicity to the asset in a construction just like its Bitcoin and Ethereum merchandise.

The announcement helped elevate confidence amongst conventional buyers, with ZEC’s market cap rising from $700 million earlier in September to greater than $1.8 billion.

Zcash’s improvement staff has additionally been energetic. The Zcash Basis not too long ago laid out an 18-month roadmap that features NU7 upgrades and audits for Zcash Shielded Belongings (ZSAs).

These steps are designed to enhance scalability, safety, and interoperability, probably boosting throughput.

Cross-chain integrations akin to ZEC swaps on THORSwap have additional prolonged its utility, permitting customers to work together seamlessly with belongings like Bitcoin and Ethereum in decentralized finance settings.

The rally has elevated consideration throughout the privateness coin sector. Monero (XMR), the most important privateness coin by market capitalization, traded at $330.12 with weekly good points of 13.6%.

Sprint (DASH) rose 61.4% over the previous seven days to $32.95, whereas Beldex (BDX), Decred (DCR), and Zano (ZANO) additionally recorded weekly good points. Even so, Zcash’s outsized transfer and zk-SNARK maturity set it aside from rivals.

At press time, ZEC trades above $130 with a market capitalization of $1.8 billion, making it the 82nd-largest cryptocurrency.

EU to Ban Privateness Cash Beneath New AML Guidelines by 2027

The European Union is transferring ahead with a ban on privacy-preserving cryptocurrencies as a part of its new Anti-Cash Laundering Regulation (AMLR), which is able to take impact in 2027.

The foundations prohibit banks, monetary establishments, and crypto asset service suppliers from dealing with anonymity-enhanced tokens akin to Monero and Zcash, in addition to nameless crypto accounts.

Article 79 of the AMLR explicitly bars the upkeep of nameless accounts or companies that permit transaction anonymization. The framework covers not solely privateness cash but in addition different monetary merchandise designed to obscure possession or transfers.

Whereas the core guidelines are remaining, regulators are nonetheless engaged on implementation particulars by delegated and implementing acts underneath the European Banking Authority.

Dubai has already enacted related restrictions. Its Digital Belongings Regulatory Authority (VARA) outlawed privateness cash in February 2023, barring each issuance and associated actions.

VARA, which oversees all digital asset suppliers within the emirate, outlined anonymity-enhanced tokens as belongings that block traceability on public ledgers. Corporations that fail to conform face fines of as much as AED 50 million ($13.6 million) or a proportion of annual income.

Globally, privateness instruments stay underneath heavy scrutiny. Within the U.S., prosecutors have pursued high-profile instances towards Twister Money and Samourai Pockets, accusing their founders of transmitting illicit funds by untraceable mixing companies.

The pattern exhibits a rising regulatory push to curb anonymity in digital belongings, whilst privateness advocates warn of dangers to monetary freedom.

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