Zcash (ZEC) surged 240% in September, outpacing Bitcoin and Ethereum for its strongest rallies in years

Zcash (ZEC), one of the longest-standing cryptocurrencies, has seen a major rally that has dragged it back into market relevance after years of being considered an afterthought like many other OG cryptos.

According to market intelligence firm Messari, ZEC’s price jumped 240% in September, while its mindshare, a metric tracking social and media mentions, is up by 804%.

The data confirm the renewed wave of investor and public interest in privacy coins amid increasing concerns about financial surveillance and tightening regulatory oversight in crypto markets.

Privacy coins may be staging a comeback after Zcash made big price and mindshare gains in September. Source: Messari

Zcash’s resurgence outpaces the market

As of the first days of September, ZEC was trading just above $40. Within the space of one month and a few days, it is now trading above $160 as of the time of writing. The rally surpasses Bitcoin, Ethereum, and Solana’s rise over the same period by multiples.

Analysts say the rally has been fueled by renewed enthusiasm for digital privacy amid expanding global surveillance and tightening regulation around self-custody wallets.

Also, social media engagement around Zcash has grown tremendously, with some influencers claiming that it’s the next best thing after Bitcoin.

Another conversation that contributes to the increasing popularity of privacy coins is the fact that their use cases are reminiscent of some of the founding principles of crypto, which wanted people to move money privately away from the closely surveilled global money system.

Coincidentally, that was also the problem that these privacy coins face. However, many have now incorporated systems that enable transparency and help users stay compliant.

Catalysts behind the ZEC revival

The renewed attention has helped ZEC to break an eight-year downtrend, triggering technical momentum among traders who viewed the coin as deeply undervalued. Increased open interest and rising on-chain transaction volumes suggest the rally is attracting both retail traders and larger holders.

Institutional exposure may also be contributing to the momentum. Leading asset manager, Grayscale, may be one of the leading institutional catalysts via its Grayscale’s Zcash Trust (ZCSH), which it made open to eligible investors for private placement.

The Trust allows investors to gain exposure to ZEC as security without the hassle of buying and storing the token directly.

Are privacy coins staging a comeback?

Zcash’s resurgence aligns with an uptick in privacy narratives across crypto markets. Privacy coins have seen considerable growth and have been one of the best-performing sectors in the crypto market in the last 30 days.

Monero (XMR) and other privacy-focused projects have also posted modest gains, while newer zero-knowledge (zk) infrastructure tokens have drawn renewed investor attention

However, regulatory headwinds remain strong. Privacy coins have faced delistings on major exchanges in several jurisdictions, including Japan, South Korea, and parts of Europe. While Zcash’s hybrid model allows users to choose between transparent and shielded transactions, a feature often touted as compliance-friendly, its association with anonymity still places it in a grey zone for regulators.

Despite those constraints, the privacy sector has proven resilient. Messari’s data spotlighting ZEC’s mindshare growth and price rise indicate that the public interest and the conversation around privacy tokens are on the rise. For developers and advocates, that could mean a deeper, more sustainable revival rather than a fleeting hype-driven pump.

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