Grayscale Sees 18x Upside for Zcash in AI Era
Asset manager Grayscale has identified Zcash (ZEC) as a significant investment opportunity, arguing the market underprices its utility in an economy increasingly shaped by artificial intelligence. In a report from analyst Michael Zhao, the firm projects Zcash could see an 18-fold increase in value if it captures just 5% of the $1.6 trillion crypto "currencies" sector. Currently, ZEC accounts for only 0.3% of this segment, a share Grayscale believes reflects a dated view that privacy is a marginal feature. The report contends that as AI and blockchain transparency grow, financial confidentiality will shift from a niche want to a core demand, positioning Zcash for a major repricing.
Zcash is nearly 10 years old but may be entering a new chapter. Use of its shielding technology is increasing, and new capital is entering the ecosystem to support wallet development and Zcash mining.
— Michael Zhao, Analyst at Grayscale
ZEC Climbs 5% But Volatility Concerns Linger
The market responded swiftly to the bullish thesis, with ZEC's price increasing 5% to trade around $224.80. This move adds to recent gains, including a 7% jump on March 23. However, Zcash has a history of sharp, narrative-driven price swings followed by steep corrections. In late 2025, the token soared to nearly $700 before collapsing more than 60% in subsequent months as market attention shifted. This volatility underscores the risks associated with the asset. Currently, ZEC is navigating a critical technical zone, with immediate support noted between $222 and $224 and significant resistance near the $230 mark, where selling pressure has previously emerged.
VCs Inject $25M as Ecosystem Development Accelerates
Beyond speculative interest, the Zcash ecosystem is showing signs of fundamental growth, attracting significant institutional capital. The Zcash Open Development Lab (ZODL) recently secured $25 million in seed funding from prominent venture firms Paradigm and a16z crypto. This investment is aimed at accelerating the development of the Zodl wallet and enhancing shielded privacy tools. Further reinforcing this momentum, the Zcash Foundation's 2026 roadmap includes key network upgrades like the high-performance Zebra node and FROST threshold signatures, designed to improve scalability and institutional readiness. These developments suggest a growing commitment to building out Zcash's technical infrastructure, independent of market narratives.
