On Saturday, Zcash surpassed $800 for the first time since 2018, as talk of the 'next Bitcoin,' billion-dollar futures volumes, and Grayscale's spot ETF triggered a 38% rally.
The privacy-focused token was built upon Bitcoin's design, inheriting its 21 million supply cap, Proof-of-Work mining schedule and halvings, as well as shielded transactions from the top. Research firm reviewed the technical rationale behind this process in several reports this year, focusing on the Tachyon upgrade and the network's approach to quantum readiness.
Saturday's move allowed the token to break past its January 2018 peak around $800, which had remained the token's high for 8 years, and to surpass the $750 level reached last November. Over 24 hours, it traded between $589 and $851, representing a 45% swing.
Crypto fund DCG is behind several developments surrounding Zcash. On August 18, Grayscale, which is owned by Zcash, filed a fourth amendment to convert its Zcash Trust into a spot exchange-traded fund on NYSE Arca under the ticker ZCSH.
The amendment continues the conversion process but does not mean the ETF has been approved, as the filings are still subject to SEC review.
The document also states that DCG International Investments, another subsidiary, is in optional discussions to purchase roughly 200,000 ZEC through the trust for about $163 million at Saturday's price.
Meanwhile, Zcash futures volume reached approximately $4.55 billion on Friday compared to around $553 million in spot trading, with open interest around $1.35 billion. Over the past 24 hours, volume was $2.24 billion, equivalent to roughly 16% of Zcash's market value.
Leveraged buying accelerates upward movement and makes any reversal sharper, and Zcash has already shown this year how quickly it can go the other way. The token sold off sharply in June after a vulnerability was discovered in its Orchard shielded pool.
Zcash currently ranks 12th by market value at $13.87 billion, surpassing any other privacy-focused token.
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