Zcash (ZEC) has seen one of the strongest rallies lately, surging 790% since October and outperforming the top 10 cryptocurrencies in gains.
However, in the midst of this bull run, skepticism abounds with many wondering if the ZEC rally represents a bubble that could soon burst.
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Zcash Bulls vs. Bears: Is the return of the privacy coin built to last?
Zcash has become one of the most talked about assets in the crypto space. Its price rally has propelled it to multi-year highs, defying the broader market slowdown.
Currently, ZEC ranks as the highest performing coin over the last 90 days. At the time of publication, it was trading at $627, an increase of more than 3% from the previous day.
However, not everyone is convinced of Zcash’s potential. Some critics maintain that the recent rally was primarily driven by the shilling of KOLs (key opinion leaders).
“ZEC’s recent move of $265 so far is entirely due to noise from Arthur Hayes and Ansem, who probably started pumping ZEC out of nowhere over the last three weeks. They are clearly driving the price up,” one analyst stated.
Additionally, traders have expressed concern about parabolic price action, noting that such vertical movements often precede sharp corrections. Many are also betting on new price increases in the derivatives market.
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“I’m bullish on the privacy thesis, but parabolic charts rarely hold up in the short term without a significant pullback. Too much short-term FOMO in my opinion,” said one trader.
Prediction markets reflect changing sentiment. On Polymarket, the odds of ZEC reaching $1,000 in December fell from 50% to 37%. This indicates doubts among traders regarding sustainability.
What will drive Zcash in 2025?
However, experts maintain that Zcash’s rally is backed by solid fundamentals and not pure speculation. Nansen analyst Jake Kennis told BeInCrypto that the cryptocurrency’s rise to an eight-year high has been driven by multiple factors, including the growing recognition of privacy as a necessity rather than a feature.
“On the technical front, Zcash’s zero-knowledge architecture, the Zashi wallet that enables secured transfers, and Solana integration improve usability and accessibility… The renewed attention and positive price action has attracted renewed attention from high-profile figures such as Arthur Hayes and Barry Silbert. After years of underperformance, ZEC’s resurgence has attracted new capital flows,” he commented.
The analyst added that Zcash’s Bitcoin-like tokenomics, combined with its zk-SNARK-enabled privacy, positions it as an “encrypted Bitcoin.” Forecasts from market watchers have also added to the bullish momentum. Many believe ZEC could reach $1,000 by 2025, even as skeptics anticipate a possible price correction.
“You can’t ignore the fact that it will be the fastest token to reach a market cap of $100 BILLION. Don’t fade privacy coins,” predicted one market analyst.
As November progresses, it remains uncertain whether Zcash will be able to maintain its explosive gains or face a sharp correction. The contrasting forecasts highlight a deep divide in market sentiment, and the coming weeks will reveal whether the bulls or bears will have the upper hand.