Key Takeaways:
- ZEC surged 40% on May 6 to hit $600, briefly pushing its total market capitalization to $10 billion.
- Multicoin Capital built a major ZEC position, citing its seizure-resistant fit for the 2026 market.
- Analysts suggest ZEC could rally further to eclipse its 2025 peak of over $700 if momentum persists.
Market Mechanics and Liquidations
The privacy coin Zcash (ZEC) rocketed past the $500 mark late Tuesday and continued its ascent through May 6, peaking at $600. The surge, reminiscent of the digital asset’s rally in the last quarter of 2025, saw ZEC flip Monero as the top privacy coin by market capitalization.
Market data show ZEC, which traded around $350 at the start of the month, saw its initial spike toward the evening of May 5, jumping from $430 to $520 in approximately two hours. It rose gradually to $541 for the remainder of the day into the early hours of Wednesday. A second wave ultimately propelled ZEC to $600, briefly pushing 24-hour gains past 40% and its market capitalization to $10 billion.
Meanwhile, ZEC’s upward trend saw nearly $44 million in short bets on the cryptocurrency liquidated in 12 hours and nearly $59 million over 24 hours.
According to a recent Bitcoin.com News report, the ZEC rally follows endorsements from high-profile figures like Raoul Pal, who labeled the asset a “ bitcoin sibling.” Similarly, Grayscale Chairman Barry Silbert has championed Zcash, suggesting the privacy coin could replicate Bitcoin’s historic 2017 bull run.
Beyond influencer endorsements, Zcash appeared to jump on reports that Multicoin Capital, a crypto-focused investment firm, had built a significant ZEC position. Explaining the move, Multicoin Capital cited Zcash’s return to the “cypherpunk” philosophy that birthed cryptocurrency. The firm also identified a proposed wealth confiscation bill in California as a warning signal that prompted the pivot to ZEC, which it said can protect its interests.
“We believe that truly private, censorship and seizure-resistant assets have [a] clear product-market fit and demand is accelerating. We believe ZEC is the cleanest way to express this thesis in public markets,” said Tushar Jain, co-founder at Multicoin.
The listing of ZEC on Robinhood, which opens access to millions of retail investors, is also cited as a catalyst for the latest surge.
However, critics warn that ZEC’s latest parabolic price move may be “overextended” and driven more by speculative fever than onchain utility. Others argue that while “shielded” supply has hit an all-time high of more than 31%, it increases the risk of “dark pool” manipulation. In such a scenario, large movements by whales are hidden from public view, potentially leading to liquidity crunches on transparent exchanges.
Still, with weekly gains nearing 80%, ZEC has significantly outperformed the broader market and will likely continue drawing interest from retail investors chasing momentum. Should this trend persist, the privacy coin could rally further, potentially eclipsing its 2025 peak of just over $740.
