Zcash traded above $1,000 this week for the first time since its launch in 2016, as Arthur Hayes and two other prominent cryptocurrency voices publicly discussed their support for the privacy-focused token.
At 22:18 UTC on Thursday, Hayes posted a one-hour chart showing ZEC at $1,021.69. The chart tracked the coin’s rise from a low of about $250 in early June, through a July trading range between $400 and $580, before the market moved sharply higher after 21 August.
By Thursday evening, ZEC had reached four figures for the first time since its launch-driven surge in late 2016.
At the time of publication, ZEC was trading at about $1,010 after reaching a 24-hour high of $1,046. The token had gained 98% over 30 days and 2,296% over 12 months, giving it a market capitalisation of $17bn.
That valuation placed Zcash 11th among cryptocurrencies and just ahead of dogecoin, whose market capitalisation stood at $13.4bn.
The move has taken place despite a weaker session for bitcoin. Bitcoin fell 1.4% over the same 24-hour period to about $79,700, suggesting Zcash’s rally was not simply a reflection of the wider market.
The sharp rise also put pressure on traders betting against the token. About $34.5m of short positions were liquidated on Friday, while open interest climbed to almost $2.15bn.
ZEC was trading at around $40 one year ago, before reaching $200 in March.
Institutional interest has been another feature of the rally. Bitcoin.com News has followed Zcash’s rise through August, when ZEC first advanced 82% from approximately $472 to a peak close to $890 on 30 August.
That increase coincided with Grayscale converting its nine-year-old Zcash Trust into ZCSH, described as the first US spot exchange-traded fund (ETF) to hold the token.
ZCSH began trading on NYSE Arca on 25 August. The fund charges a 2.5% fee, which Grayscale says will be directed back into the Zcash ecosystem.
By 3 September, ZCSH held $414.7m in assets, up from $304m when the conversion took place.
Hayes has been the most vocal of the publicly identified holders, although he was not the only prominent figure discussing Zcash on Thursday. Three of the cryptocurrency sector’s most outspoken voices spent the day explaining why they owned the privacy coin.
The scale of the gains has also increased the risk of a sharp reversal. A token that has risen by about 2,300% in a year can fall quickly, particularly in the volatile cryptocurrency market.
Open interest above $2bn means forced liquidations could drive the market in either direction. ZCSH’s 2.5% charge is also high by ETF standards and could restrict further inflows once the initial excitement surrounding the product fades.
Zcash reached an intraday high of $979 in earlier market data, underlining the speed of its recent advance. With leverage elevated and the ETF still new, the coming weeks are likely to test whether the rally can be sustained.
