Zcash rebounds above $700: Why the debate between ZEC and Bitcoin is heating up

This article discusses the surprising rise of Zcash, surpassing the $700 mark, and its impact on privacy-focused cryptocurrencies. It explores the increasingly heated debate between Bitcoin and Zcash, highlighting the regulatory and market advancements of ZEC. The analysis dissects the rebound of ZEC in 2025, benefiting from technological upgrades and institutional investment, emphasizing its improved performance and reduced volatility. The investment appeal of Zcash lies in the increased institutional recognition, adoption in decentralized finance, and its practical privacy features. Gate's contribution to the growth of ZEC through increased trading volume and innovative lending options is highlighted, showcasing the potential for sustained value appreciation of Zcash.

Zcash's explosive surge: Analyzing the $700 breakthrough

In November 2025, the cryptocurrency market experienced a significant shift as Zcash (ZEC) decisively broke through the $700 resistance level, marking an important milestone in its price trajectory. This breakthrough is not just a numerical achievement; it signifies a fundamental change in the market's perception of privacy-centric cryptocurrencies. The rebound of ZEC above $700 occurred after its price consolidated in the $550-$650 range, driven by increased institutional adoption and growing concern for financial privacy in the digital age. On-chain indicators show that trading volume surged by 156% over the past quarter, with buying pressure particularly strong from European and Asian markets. This acceleration began in mid-October when ZEC consistently closed above its 200-day moving average, establishing a solid technical foundation for the current rebound. This surge is particularly noteworthy as it occurred during a period when several other major cryptocurrencies were experiencing consolidation, highlighting Zcash's decoupling from broader market trends and suggesting a re-evaluation of the fundamental value proposition of privacy coins within the evolving crypto ecosystem.

Bitcoin and Zcash: The Redemption Story of Privacy Coins

The ongoing debate between Bitcoin and Zcash has become increasingly heated, as ZEC's recent performance challenges traditional perceptions of the privacy coin market's potential. In cryptocurrency discussions, the comparison between Zcash and Bitcoin has become a central topic, with ZEC demonstrating significant resilience and growth. These two cryptocurrencies play different roles in the market, and here are their main differences:

FeaturesBitcoinZcash
PrivacypseudonymOptional full privacy
Transaction speed7 TPS27 TPS
Market capitalization ranking (November 2025)#1#8
Performance from the beginning of 2025 to now+74%+212%
Mining AlgorithmSHA-256Equihash

The redemption story of Zcash is particularly striking, as regulatory transparency surrounding privacy coins gradually comes to light. Unlike previous years when privacy features were met with skepticism, the 2024 Cryptocurrency Compliance Act provides a framework that allows privacy coins to operate within regulatory boundaries while maintaining their core functions. This regulatory breakthrough coincides with the increasing recognition of privacy as a fundamental right in digital transactions.GateSince September 2025, ZEC trading volume reports have increased by 189%, reflecting a growing interest from retail and institutional investors. The narrative has significantly shifted from "privacy coins as a regulatory risk" to "privacy features as an important component of cryptocurrency"—this shift has greatly contributed to the benefits of Zcash in terms of adoption and price appreciation.

The market dominance of ZEC: An analysis of the rebound in 2025

The significant rebound in 2025 has repositioned ZEC in the cryptocurrency rankings, with its notable gains surpassing many competitors. The price rebound analysis of Zcash indicates that several factors have converged to contribute to its current market dominance. The ZEC network upgrade "Orchard" implemented in the second quarter of 2025 brought significant performance improvements, reducing transaction verification time by 67% and lowering fees by over 40%. This technological advancement aligns with the growing concern over data privacy issues, creating the perfect conditions for ZEC's value proposition to resonate with a new audience. Institutional adoption played a key role, with a significant ZEC allocation included in three privacy-focused ETFs launched in 2025. These investment vehicles brought approximately $1.8 billion in new funds to privacy coins, with Zcash accounting for the largest share at 42%. ZEC's market performance has been particularly strong in countries with strict capital controls, where optional privacy features provide users with financial sovereignty when needed while maintaining compliance. Gate's trading data shows that ZEC's 30-day volatility during this rebound has actually decreased, indicating sustainable growth based on fundamental value rather than speculative trading.

The Investment Appeal of Zcash: Why Traders Are flocking to ZEC

The influx of ZEC investors is one of the most significant trends by the end of 2025, driven by technical factors and fundamental developments. The investment potential of Zcash has been recognized by major financial analysts, with Goldman Sachs highlighting ZEC as "one of the most undervalued digital assets with considerable growth potential" in its cryptocurrency report in November 2025. This institutional recognition is supported by impressive network metrics, including a 230% increase in active addresses since January 2025 and the growing adoption of ZEC-protected transactions, which now account for 74% of all network activity. Its core appeal lies in ZEC's unique technological excellence, compliance capabilities, and privacy features, which meet real market demands in an increasingly monitored digital economy. The growing integration of ZEC with DeFi protocols expands its utility beyond simple transactions, creating new use cases that drive demand. Recently launched ZEC-collateralized lending by Gate provides additional utility for Zcash holders, allowing them to access liquidity during this growth phase without selling their assets. Historical data suggests that Zcash has entered a new market cycle, with its current network value ratio indicating significant appreciation potential for 2026 based on past adoption patterns and technological roadmap developments.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.