Zcash Leads Privacy Coin Surge in Q4 – Analyst Predicts ZEC Could Reach $1,000

The cryptocurrency market witnessed significant fluctuations in 2025, but privacy coins, particularly Zcash (ZEC), thrived in the latter half of the year. Asset manager Grayscale reported that these coins dominated both performance and social discussions. Despite ZEC's volatile journey, analysts speculate that it could reach as high as $1,000 in the near future.

Key Takeaways

Zcash and other privacy coins dominated the Q4 performance in 2025.
ZEC posted remarkable gains exceeding 600%, while other privacy coins like Dash and Monero also saw significant returns.
ZEC has faced volatility, dropping sharply after an initial surge.
Analysts suggest that the limited supply may lead ZEC’s value to increase toward $1,000.
Market sentiment is currently mixed, with some traders betting against ZEC.

Zcash leads Q4 privacy rally - Analyst foresees ZEC at $1,000

Main Content

The overall cryptocurrency market saw a reversal of many of its earlier gains in 2025, yet privacy coins, spearheaded by Zcash (ZEC), captured significant attention during the second half of the year. According to Grayscale, a prominent asset management firm, the top 20 performers in Q4 were led by privacy coins such as ZEC, Monero (XMR), and Dash (DASH).

In addition to impressive investor earnings, ZEC and other privacy coins maintained a strong presence in social discourse. Grayscale noted, “Tokens in this theme dominated in mindshare, suggesting that price performance was driven at least in part by strength in narrative momentum. This coincided with rising usage across several privacy networks, including Zcash and Dash.”

Zcash ZEC
Source: Grayscale

In the fourth quarter, ZEC experienced significant growth, boasting gains of over 600%. Following closely was DASH, which increased by 218%, while Monero enjoyed a 48% surge during the same timeframe. According to experts, including partners from reputable venture capital firm a16z, privacy is projected to be the “most important moat in crypto.” If this narrative persists into 2026, ZEC's upward trajectory may continue.

Can ZEC Reach $1,000?

It's essential to note that ZEC's impressive gains were marked by considerable volatility. After an explosive increase of more than 1000% in October, where it peaked at $751, the coin subsequently dropped to $320 by early December. As of this writing, ZEC had rebounded to around $539, still approximately 35% shy of its all-time high (ATH).

Zcash ZEC
Source: ZEC/USDT, TradingView

The pressing question remains: Can ZEC double its value and surpass the $1,000 mark? A pseudonymous analyst calling themselves Anonymist believes this target is attainable, particularly ahead of an impending supply crunch. They pointed out that of the approximately 16 million ZEC coins in circulation, around 5 million are shielded and may not be easily traded, leaving only about 10 million ZEC available on the market. The analyst explained, “As the price continues to rise, the tradable supply is being squeezed, with exchanges holding fewer and fewer ‘free coins.’ I project that at a price of around $1,000, there may be only around 8-9 million tradable coins.”

Zcash
Source: X/Anonymist

However, as of now, prediction platform Polymarket shows only a 30% chance that Zcash will reach the $1,000 mark. Furthermore, data from CoinGlass indicates that 70% of top traders on Binance are currently shorting the asset, reflecting a bearish sentiment among certain market participants. Regardless, a rising trend of buying in the spot markets may help propel Zcash's recovery in the near future.

Final Thoughts

ZEC's journey in the volatile world of cryptocurrencies showcases the power of privacy coins in garnering attention and fostering investment interest. While challenges remain, the narrative surrounding privacy may continue to shape ZEC's future trajectory as the market evolves.