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Zcash (ZEC) Falls Sharply, Yet Privacy Demand Fuels Long-Term Optimism
Zcash (ZEC) has entered one of its most turbulent weeks of 2025, plunging over 35% from its recent high near $750. Yet, despite the steep decline, analysts and industry leaders remain resolutely bullish, pointing to strengthening fundamentals and renewed interest in privacy-focused blockchain technology.
Privacy Demand Fuels Long-Term Optimism
For many investors, Zcash isn’t just another altcoin—it represents a movement toward digital privacy and financial confidentiality. Even as prices fell, on-chain data reveals that the amount of ZEC locked in the Shielded Pool, the network’s private transaction layer, has climbed dramatically.
According to data from Zcash Total Shielded Pool, the number of tokens locked rose from 2.6 million in March to over 4.1 million by early November, showing exponential growth.
Mert, CEO of Helius Labs, commented on X that “the shielded pool on Zcash is literally vertical,” praising the real-time improvement of its privacy features as “one of the most incredible things” happening in crypto.
Institutional and Regulatory Momentum Builds
A new report from a16z Crypto highlighted growing urgency around blockchain privacy. Searches for terms like crypto privacy and financial privacy have surged in 2025, while Railgun Protocol — which conceals transaction trails — has seen significant inflows.
Adding to the optimism, the U.S. Treasury Department recently lifted sanctions on Tornado Cash, signaling a more tolerant approach toward privacy protocols.
Experts such as Omid Malekan, professor at Columbia Business School, and Arthur Hayes, co-founder of BitMEX, echoed bullish sentiment. Hayes urged holders to move their ZEC to self-custody, reinforcing trust in Zcash’s decentralization principles.
Analysts View the Pullback as “Healthy”
Despite the recent correction, analysts argue that the retracement is part of a normal market cycle. Investor Yoshi said, “Zcash will reach $10K, with some retracement phases, which is normal and healthy.”
Others, like Vini Barbosa, noted that many whales are realizing profits exceeding 1,000%, adding that such selling is “expected and healthy.”
The Bigger Picture: ZEC’s Long-Term Potential
With a Bitcoin-like halving mechanism reducing inflation and growing recognition of privacy as a necessity, Zcash appears fundamentally stronger than ever. Analysts believe these drivers could propel ZEC into the next major bull phase, while inspiring momentum across smaller privacy-themed altcoins.
Experts predict that privacy-focused tokens could soon attract institutional inclusion through Digital Asset Trusts (DATs) — potentially ushering in new capital and legitimizing the privacy sector’s next growth cycle.
