Zcash Surges to $1,000 After $34.5 Million in Liquidations
The move followed a $34.5 million short squeeze and heavier trading in ZEC futures. Grayscale’s spot Zcash ETF and new privacy tools add more context to the rally.
Key Takeaways
- Zcash jumped nearly 20% on Friday to around $1,023, after starting the day near $828.
- Short sellers were liquidated for $34.5 million, while 24-hour volume climbed to about $1.2 billion.
- The rally came alongside the launch of Grayscale's spot Zcash ETF and new network tools that speed up private transactions on mobile.
Zcash surged on Friday and briefly touched around $1,000 (€861) after rising about 20% in 24 hours. The privacy token started the day near $828 (€713) and later climbed to about $1,023 (€881), while short sellers were forced to close positions for $34.5 million (€29.7 million).
Strong Rally in ZEC
That puts the ZEC token on an eye-catching run. Over the past month, the price has nearly doubled, and over the last 30 days the gain is around 94%. Over the past year, Zcash has climbed more than 2,300%, making it one of the strongest major crypto assets in that period.
Trading activity also picked up sharply. 24-hour volume came in at about $1.2 billion (€1 billion), and market value rose toward $17 billion (€14.6 billion). That points to a lot of activity around the token, not just in the spot market but also in derivatives.
Shorts Took the Hit
According to liquidation data, a total of about $36.6 million (€31.5 million) in leveraged ZEC positions was closed. Of that, $34.5 million (€29.7 million) came from shorts. In a short liquidation, a rising price forces an exchange to close a bearish position because there is no longer enough collateral.
That can add extra momentum to a move higher, because short sellers have to buy ZEC back. Open interest in ZEC futures meanwhile rose to about 2.3 million ZEC, worth roughly $2.3 billion (€2 billion).
ETF and Network Add Context
The rally came as privacy coins got more attention in the crypto market, partly because of concerns about data and security. For Zcash, that was joined by the fact that Grayscale's spot Zcash ETF move from Grayscale started trading on NYSE Arca in late August under the ticker ZCSH. That gave the fund a regulated path for investors with a brokerage account, after the trust had previously been available only to accredited investors.
Something also happened on the network side. Developers behind Zakura, a Zcash node launched in July, released cryptographic tools earlier this month that cut the time needed to create a private transaction on mobile from more than three seconds to less than 200 milliseconds. That fits into the broader push to make the chain faster and more usable for everyday payments.
