Zcash (ZEC) has seen an extraordinary surge in November 2025, climbing over 1,000% from late September to early November and becoming the most-searched asset on Coinbase, surpassing even Bitcoin and XRP. This dramatic increase in interest and value is largely attributed to the activation of its NU6.1 network upgrade and a new, more decentralized funding model.
The NU6.1 upgrade, the eighth major network enhancement for Zcash, officially activated at block height 3146400 on November 24, 2025. This significant update introduces a revised funding model that allocates 8% of block rewards to community grants and 12% to a coinholder-controlled fund, aiming to give the community and coin holders a direct voice in development support. The upgrade also brings improvements to transaction handling and governance, moving towards a more decentralized and developer-friendly future.
Cointelegraph reported on the phenomenon, highlighting how Zcash transitioned from a "low-profile relic" to a top-performing cryptocurrency. The rally is further supported by the 2024 halving, which cut supply growth in half, and a significant increase in shielded usage, now accounting for over a quarter of the circulating supply. These fundamental shifts have positioned Zcash as a leader in programmable privacy.
Before this recent surge, Zcash, a privacy-focused cryptocurrency, had largely remained in the background compared to other major cryptocurrencies. However, with the implementation of NU6.1 and its strategic focus on enhanced privacy and decentralized governance, market sentiment has shifted considerably. Analysts suggest that while corrections may occur, the underlying fundamental changes could establish a higher price range for ZEC.
The Zcash Foundation and Electric Coin Co. endorsed the NU6.1 upgrade, which also includes updates to the default transaction version from v4 to v5, aligning with Zcash's privacy-first roadmap. This comprehensive overhaul of its network infrastructure and governance model has not only propelled ZEC's market performance but also underscored the growing demand for privacy-centric digital assets in the evolving cryptocurrency landscape.