Zcash Records 92% Annual Price Surge as Privacy Demand and Shielded Transaction Volume Grow

Zcash (ZEC) has seen a remarkable 92% annual price surge, climbing from approximately $29.38 to $56.29 by late September 2025, driven by renewed market demand for financial privacy and recent technological advancements. Amidst this resurgence, cryptocurrency analyst Frank Braun highlighted the nuanced approach required for Zcash's privacy features to be effective.

Developed as a privacy-focused cryptocurrency, Zcash utilizes zero-knowledge proofs, specifically zk-SNARKs, to enable transactions where sender, receiver, and amount can remain confidential through "shielded addresses." Unlike transparent transactions, which are publicly visible like Bitcoin, shielded transactions offer users control over their financial data. This optional privacy allows Zcash to balance anonymity with potential regulatory compliance needs.

Frank Braun, in a recent tweet, cautioned against misusing Zcash for privacy.

"Using Zcash as a mixer doesn't work — transactions going in and out can be correlated by time and value," Braun stated. He further explained, > "The only way to break this link is to use it as a store of value. If the market demands more financial privacy and understands this dynamic, value will accrue to Zcash." This sentiment echoes previous statements by Zcash CEO Zooko Wilcox, who emphasized that privacy stems from storing funds at rest in shielded pools, not merely passing them through.

Despite historical concerns about low shielded transaction adoption, recent data indicates a positive shift. Shielded transaction volume reached 3.06 million in September 2025, marking a 6% monthly increase, suggesting growing user engagement with Zcash's privacy features. The Electric Coin Company (ECC) further enhanced Zcash's utility with the September 2025 rollout of Zashi CrossPay, enabling private cross-chain payments via NEAR Protocol Intents.

The significant price appreciation of ZEC over the past year is attributed to several factors. These include the Zcash halving event in November 2024, which reduced block rewards and supply, and a broader bullish sentiment within the altcoin market. Growing institutional and retail interest in privacy-preserving assets, amidst increasing scrutiny on transparent blockchains, has also fueled Zcash's momentum.

While Zcash's technological advancements position it as a leader in financial privacy, it continues to navigate a complex regulatory landscape. The optional nature of its privacy features is seen as a strategic advantage, potentially allowing it to engage with regulators more effectively than purely opaque privacy coins. However, the ongoing tension between financial privacy and regulatory oversight remains a critical challenge for wider integration into traditional finance.