Zcash Surges 17%, Overtakes Solana in Speculation – What’s Next?

Zcash experienced a remarkable 30% rally, known as the "Santa Rally," despite Bitcoin’s stagnant movement and has surpassed Solana in speculative trading interest.

Key Takeaways

Zcash (ZEC) surged 17% to $515, recovering 43% of its losses from Q4.
In the Futures market, ZEC outperformed Solana (SOL) in global perpetual volume, with ZEC achieving $2.9 billion compared to SOL's $2.65 billion.
The privacy-focused narrative is the strongest in 2025, bringing ZEC significant investor attention.
Accumulation trends indicate more ZEC moving away from exchanges, hinting at future price potential.
Current upward momentum might lead ZEC to target $600 or even $750, while a drop below $450 could disrupt recovery.

Zcash Surges 17%, Overtakes Solana in Speculation – What’s Next?

Zcash’s Price Surge

On December 27, Zcash (ZEC) increased by 17% to reach $515, marking a 43% recovery in December and cutting its Q4 losses in half. This surge is notable in context to Bitcoin's lack of significant movement during this period.

In the Futures market, ZEC's global trading volume has surpassed that of Solana, reflecting increased speculation interest. Specifically, ZEC saw a volume of $2.9 billion, securing approximately 7% of the total market and placing it behind Ethereum (ETH) and Bitcoin (BTC), while Solana followed closely with $2.65 billion.

Zcash Source: Laevitas

Privacy Market Performance

According to data from Artemis, privacy-centric cryptocurrencies have become the top-performing sector in 2025, led by ZEC, Monero (XMR), and others, with an average annual return exceeding 250%. In contrast, memecoins, which have been largely associated with the Solana blockchain, reported an average annual loss of 62%, indicating a significant downturn in that segment.

Zcash Sector Performance Source: Artemis

Zcash has not only seen positive price movements but also demonstrated consistent usage growth. By the end of 2025, the total supply of shielded ZEC has increased to 5 million, nearly doubling in a few months.

ZEC Usage Growth Source: CoinMetrics

In response to this robust growth, analyst Peter Costi remarked, “The world is realizing that the system is broken, and more of our privacy is being stolen each day, which is why the shielded pool continues to grow.” Costi views ZEC’s price increase as a secondary consequence of rising interests in private "shield" transactions.

What Lies Ahead for ZEC?

There has also been a notable accumulation of ZEC over the past week, as evidenced by the overall trend of exchange outflows (more ZEC being withdrawn than deposited). This trend suggests a bullish outlook for ZEC's price.

ZEC Exchange Outflows Source: Coinglass

If this momentum persists, the price targets of $600 or $750 could be achievable. The December uptick has effectively reclaimed the 50-day Moving Average, indicating an upward trend. However, a significant drop below the short-term support of $450 may hinder this recovery.

ZEC Technical Chart Source: ZEC/USDT, TradingView

Conclusion

Zcash's impressive performance raises questions about its future trajectory in the cryptocurrency market. Will it maintain this momentum? Only time will tell as market dynamics continue to evolve.