Privacy coins will fully explode in the fourth quarter. After Zcash surged by 600%, can ZEC really break through $1,000?

In 2025, the overall cryptocurrency market retraced its previous gains, but privacy coins surged in the second half of the year, especially in the fourth quarter. Among them, Zcash (ZEC) became the most watched core asset, leading the overall upward trend in the privacy coin sector.

According to data from asset management firm Grayscale, nearly all of the top 20 cryptocurrencies with the strongest performance in the fourth quarter are from the privacy coin sector, including projects such as Zcash, Monero (XMR), and Dash (DASH). Grayscale pointed out that privacy coins not only outperform in price performance but also lead in social media discussion and user attention, indicating that market momentum is increasingly focused on privacy-protecting cryptocurrencies.

In terms of gains, ZEC rose over 600% in the fourth quarter, Dash increased about 218%, and Monero also gained 48% during the same period. Several industry insiders believe that privacy is gradually becoming one of the most important “moats” in cryptocurrencies, with multiple experts, including partners from a16z, publicly emphasizing the strategic value of privacy technology in the future blockchain ecosystem. If this trend continues into 2026, Zcash’s medium- to long-term performance still has room for imagination.

However, ZEC’s upward path has not been smooth. In October, Zcash experienced a rapid surge of over 1000%, with the price reaching a historical high of $751. It then retraced to about $320 in early December, with volatility particularly prominent among mainstream coins. Currently, ZEC has rebounded to around $539, still about 35% below its all-time high.

Some bullish views suggest that the supply structure could be a key factor for ZEC’s further rise. Of the approximately 16 million ZEC in circulation, about 5 million are in protected status and cannot be freely traded, meaning the actual circulating supply may be only around 10 million. As the price rises, the available trading chips on exchanges continue to decrease, and some analysts believe that when ZEC approaches $1000, the tradable supply could drop to between 8 million and 9 million.

However, market opinions remain divided. Polymarket data shows that the probability of Zcash reaching $1000 is about 30%. Meanwhile, CoinGlass data indicates that approximately 70% of top traders on major CEXs are still shorting ZEC, reflecting cautious or even bearish sentiment in the derivatives market.

Overall, the narrative of privacy coins and the accumulation trend in spot markets provide potential support for ZEC, but high volatility and short-selling pressure will remain key challenges on its path to $1000.