Grayscale sees Zcash upside on privacy repricing

Asset manager Grayscale said Zcash could see significant upside if rising AI-driven surveillance increases demand for financial privacy.

The firm argues that growing transparency on public blockchains combined with AI analytics could shift privacy from a niche feature to a core requirement in digital finance.

“Zcash is nearly 10 years old but may be entering a new chapter,”

Analyst Michael Zhao said, pointing to increased use of its privacy technology and renewed capital inflows.

Zcash uses zero-knowledge proofs to shield transaction details, positioning it as a digital cash alternative in an otherwise transparent crypto ecosystem.

Despite this, ZEC accounts for only around 0.3% of the crypto market, suggesting investors still view privacy as a marginal use case.

Grayscale noted that shielded transactions now make up the majority of Zcash activity, indicating growing real-world usage even as market share remains limited.

The firm cautioned that Zcash remains a high-risk asset, with regulatory uncertainty, execution challenges and broader technological risks still weighing on its outlook.

At the time of reporing, Zcash price was $231.57.