ZCash has surged past $500 despite broader market weakness, driven by concentrated whale accumulation and derivatives activity. The privacy token has gained over 20% in the past week while Bitcoin trades below $90,000.
What Happened: Whale Buying
ZCash reclaimed the $500 level as large holders increased positions significantly, according to Nansen data showing a 47% rise in holdings among the top 100 addresses. These wallets now control 66% of total supply.
Exchange balances dropped 55.36%, suggesting investors are moving coins into cold storage for extended holding periods. Lookonchain tracked multiple large withdrawals, including two newly created wallets that pulled 26,241 ZEC worth $13.5 million from Binance.
Another wallet withdrew 7,714 ZEC valued at $4.12 million from Kraken. A separate whale removed 30,000 ZEC worth $13.25 million from Binance last week.
Also Read: Russian Networks Laundered $35 Million From LastPass Breach Through Privacy Tools
Why It Matters: Regulatory Shift
Derivatives data from CoinGlass shows rising open interest as traders increase positions, with the long-short ratio above 1 indicating bullish positioning.
BitMEX co-founder Arthur Hayes projects ZCash could reach $1,000, representing a potential 100% gain from current levels.
ZCash co-founder Eli Ben-Sasson attributed the rally to improving regulatory conditions and growing recognition of privacy features in digital assets.
The token has recovered from a low of $310 earlier this month and remains the top performer among major cryptocurrencies with an 800% year-to-date gain.
ZCash traded at $538 at press time, up 4% in 24 hours.
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