Grayscale: Zcash's upside potential depends on the repricing of financial privacy in an AI-driven world

According to Odaily, Grayscale analyst Michael Zhao stated in a report that the advancements in AI monitoring and on-chain transparency could drive privacy from being a niche demand to becoming a core financial feature, while the crypto market is currently underpricing this possibility.

The report points out that Zcash uses zero-knowledge proof technology to conceal transaction details, and its shielded transactions now account for the majority of on-chain activity, indicating that the demand for privacy already exists in practice. ZEC currently represents only about 0.3% of the $1.6 trillion cryptocurrency sector. Grayscale believes this reflects the market's expectation that privacy features will continue to remain on the periphery, but if this expectation changes, there may be significant upside potential.

At the end of 2025, ZEC once soared to nearly $700 before pulling back by more than 60%. The report also highlights long-term risks such as regulatory uncertainty, execution risks during network upgrades, and quantum computing. As of press time, ZEC has risen 5% in the past 24 hours and is quoted at approximately $224.80.