Why did Zcash (ZEC) surge nearly 30%?

Zcash rallied after Multicoin Capital revealed it had been accumulating a large ZEC position since February. The move also coincided with growing interest in privacy-focused crypto assets and rising adoption of Zcash’s shielded transaction system.

How much did traders lose during the Zcash rally?

The price spike triggered nearly $62 million in liquidations across around 5,000 traders. Almost $60 million came from short sellers betting ZEC’s price would fall.

Why were Zcash liquidations so large?

Many traders were heavily positioned against Zcash before the sudden rally accelerated. As prices surged, short positions were forcefully closed, creating a short squeeze that pushed prices even higher.

What is Multicoin Capital’s investment thesis on Zcash?

Multicoin Capital believes privacy-focused cryptocurrencies could become more valuable as governments increase financial surveillance and tax enforcement. The firm argues that Zcash offers stronger balance privacy than transparent blockchains like Bitcoin.

What did Multicoin Capital’s Tushar Jain say about Zcash?

Tushar Jain described Zcash as “a return to the cypherpunk ideals crypto was founded on.” He argued that privacy-preserving assets may become more attractive as authorities gain better tools to track blockchain activity.

What is Zcash’s shielded pool?

The shielded pool is a privacy feature that hides transaction details such as sender addresses, recipient addresses and transferred amounts. It uses zero-knowledge cryptography to validate transactions without publicly exposing sensitive data.

Why are traders watching shielded address growth?

About 30% of Zcash’s circulating supply is now held in shielded addresses, up from just 8% in early 2024. Traders view this as a possible sign of real adoption rather than purely speculative trading activity.

How has Zcash performed over the past year?

Zcash has gained more than 1,400% over the past 12 months. Despite the rally, the token still trades below its November 2025 high near $750.

Image for illustrative purposes only. Not a real photo.

Zcash surge sparks $60M short liquidations

Written by Liezl GambePublished May. 7 2026Last Updated May. 7 2026

Zcash rallied nearly 30% over 24 hours to $543 during Asian trading on Tuesday, extending its monthly gain to more than 110% amid surging demand for privacy-focused cryptocurrencies.

The move triggered almost $62 million in liquidations across roughly 5,000 traders, including nearly $60 million in bearish short positions, making ZEC futures the second-largest liquidation event behind Bitcoin.

Trading volume surpassed $1.3 billion after crypto investment firm Multicoin Capital disclosed it had been building a significant Zcash position since February.

“Zcash is a return to the cypherpunk ideals crypto was founded on,”

Multicoin Capital partner Tushar Jain said on X.

Jain argued that growing government scrutiny of wealth and blockchain transparency could increase demand for privacy-preserving assets such as Zcash, particularly as regulators globally push for greater financial visibility.

The comments referenced California Initiative 25-0024, a proposed one-time 5% tax on residents with net worth above $1 billion, including unrealised gains, which supporters estimate could raise around $100 billion if approved.

Roughly 30% of Zcash’s circulating supply, or about 5 million coins, is now held in shielded addresses, up from 8% in early 2024, according to previous CoinDesk Research analysis.

Zcash’s shielded pool uses zero-knowledge cryptography to hide transaction details including wallet addresses and transferred amounts while still validating transactions on-chain.

The token has now gained more than 1,400% over the past year but remains below its November 2025 high near $750, with traders watching whether continued growth in shielded supply signals sustained adoption rather than speculative trading activity.

At the time of reporting, Zcash price was $543.87.