Privacy Coin $ZEC skyrocketed 6 times in a month, what drove this frenzy?

Halving, privacy narratives, and endorsements from well-known institutions and investors have jointly propelled ZEC to break through the high point of 2021. This article is derived from a piece by Akash Girimath, organized, compiled, and authored by ForesightNews. (Background: Amid the black swan big dump, $ZEC surged 37%! Why is the privacy sector shining? What opportunities are there?) (Background Supplement: Privacy coins are experiencing a general rise! Silicon Valley investor Naval Ravikant’s statement caused Zcash to soar 200% in ten days) Summary **As November halving approaches and the market's attention on privacy assets reignites, Zcash (ZEC) has once again become the focus, with traders actively positioning themselves around the privacy coin narrative. ** Sources told Decrypt that although on-chain growth is limited, endorsements from well-known investors and the heated discussion around privacy topics have still boosted market activity. ** Experts state that the sustainability of this surge depends on the market sentiment post-ZEC halving and whether user adoption can break through short-term speculation to achieve substantial growth. Under the dual driving forces of speculation frenzy and the return of privacy themes, Zcash has achieved a three-digit increase within 30 days, successfully breaking through the 2021 high point. This privacy coin surged from a low of 54 dollars to about 372 dollars within a month, ranking among the best-performing assets in the market. ZEC Historical Price Movement, Source: CoinMarketCap This price is 11.5% higher than the closing price of 319 dollars on May 8, 2021, but according to CoinGecko data, it is still down 88% from the historical peak of 3191.93 dollars set nearly nine years ago. Multiple catalysts create a perfect storm BuyUCoin CEO Shivam Thakral stated that Zcash's surge is due to a perfect combination of multiple catalysts: 1. The upcoming halving in November. It is expected that on November 18, the Zcash block reward will halve from 3.125 ZEC to 1.5625 ZEC; 2. Rising privacy concerns have driven attention back to privacy coins; 3. Arthur Hayes' proposed “10,000 dollar target price” has sparked market discussions. In the first week of October, Zcash experienced significant upward volatility for the first time, triggered by endorsements from well-known investors like Naval Ravikant and support from former Coinbase engineer and Helius CEO Mert Mumtaz. Decrypt previously reported that Grayscale decided to allow accredited investors to invest in ZEC tokens, further boosting Zcash's upward trend in the latter half of this month. The resurgence of interest in privacy coins has also strengthened the entire zone. In the past week, Monero and Dash rose by 9.1% and 12.5% respectively, with traders beginning to shift towards these established anonymous assets. “As global regulations tighten and digital surveillance controversies intensify, privacy topics have regained focus,” Thakral added, “Although Zcash is an established coin, its privacy narrative is clear and concise; coupled with the approaching halving, traders have found an easy-to-operate, liquid way to position themselves on this theme.” Sustainability of the surge is in question: speculation dominates, fundamentals to be verified However, Thakral also reminded that this surge is driven more by speculation rather than fundamental growth. The core basis is that the number of Zcash's shielded transactions has grown limited. He stated that Zcash's subsequent trend depends on two key factors: first, the reaction of miners and investors after the halving; second, whether the privacy narrative can break through pure speculation to achieve real user growth, avoiding a reversal trend of sell-off once the positive news is exhausted. Related Reports: Ban on anonymous crypto accounts and privacy coins! EU's new AML regulations will take effect in 2027, directly choking Monero and Zcash… The European Parliament passed a bill to strengthen the management of virtual currencies: restricting privacy coins, enhancing KYC for self-hosted wallets, and transaction limits… Will privacy coins explode? Grayscale applies to the SEC for “Grayscale Privacy ETF”, XMR, ZEC, DASH… all rise <Privacy coin $ZEC surged 6 times in a month, what drove this frenzy?> This article was first published in BlockTempo “Blockchain Movement - The Most Influential Blockchain News Media.”