Zcash climbed 20% in 24 hours on Sunday, reaching a record high of $1,225 before settling near $1,210, while the broader crypto market stayed largely flat over the same period.

The privacy-focused token has now gained roughly 550% from its 2026 low, and nearly 4,000% from last year's bottom. That run has pushed Zcash's market cap close to $20 billion and moved ZEC into the top 10 cryptocurrencies by market value, overtaking Dogecoin, Monero, and Chainlink during the advance.

Zcash, launched in 2016, is one of the oldest privacy-oriented blockchain networks, using zero-knowledge proofs (zk-SNARKs) to enable its shielded transactions. Its rise into the top 10 marks a notable shift for a privacy coin, an asset class that has historically faced limited exchange listings and regulatory scrutiny in some jurisdictions compared with mainstream cryptocurrencies like Bitcoin.

Crypto analyst Scott Melker, known as The Wolf of All Streets, noted that ZEC had crossed $1,000 after trading around $200 just six months ago — roughly a 5x move. He pointed to the launch of Grayscale's Zcash ETF on August 25 as a key part of the story driving institutional attention.

$ZEC just hit $1,000. Six months ago, ZEC was trading around $200. Now it briefly crossed $1,000 and pushed its market cap toward $17B. That's roughly a 5x move. But the price is only part of the story. Grayscale's Zcash ETF began trading on August 25. Since launch, it has… pic.twitter.com/E7fKhIoYb5 — The Wolf Of All Streets (@scottmelker) September 6, 2026

Coin Bureau highlighted on social media that ZEC exploded from $40 to over $1,200 in one year, calling it a 2,900% gain and one of the most explosive rallies of the current crypto cycle.

Grayscale ETF Drives Institutional Demand

Grayscale launched its Zcash product, trading as ZCSH, on August 25, listing it on NYSE Arca after converting its Zcash Trust. Assets under management have since reached $463 million, making it one of the fastest-growing crypto ETFs. The product charges a 2.50% expense ratio and is described as the first spot ZEC exchange-traded product.

🚨GRAYSCALE'S ZCASH ETF TOPS $430M AUM! $ZCSH took in more than $45 million over the past week and that fund assets have now passed $430 million. @Grayscale listed the product on NYSE Arca on Aug. 25 after converting its Zcash Trust. Independent tallies already had AUM above… pic.twitter.com/Z1VABs16z2 — Crypto Banter (@crypto_banter) September 5, 2026

Strong retail and institutional demand for privacy-focused assets has supported the rally. Zcash allows users to choose between transparent transactions and shielded ones, where sender, receiver, and amounts are hidden. The ETF's growth is a sign that regulated, exchange-traded access to a privacy coin — once largely limited to direct spot ownership — is now drawing mainstream capital channels.

Short Squeeze Accelerates the Move

Derivatives positioning played a role in Sunday's price action. CoinGlass reported $212 million in total crypto liquidations over 24 hours, with $156 million coming from short positions.

ZEC recorded the largest individual liquidations at $45.32 million. Bitcoin saw $16.79 million in liquidations and Arbitrum saw $12.94 million over the same period.

Shielded pool holdings rose to 4.85 million ZEC, the highest since June, up from a low of 4.32 million the previous month.

ZEC broke above $688, a level that capped gains in both May and November. Analysts see $1,300 as the next upside target, with $1,500 possible if buying continues.

The 24-hour trading volume for ZEC exceeded $1.6 billion, higher than most tokens in the market.