CoinDesk
Zcash (ZEC) ripped nearly 30% in 24 hours to $543 during Asian trading on Tuesday, extending a 30-day return above 110% and triggering roughly $62 million in futures liquidations across about 5,000 traders. Of that, almost $60 million was shorts while longs lost just over $3 million — making ZEC-tracked futures the second-largest liquidation book behind Bitcoin, an unusual ranking for a privacy coin.
The move followed Multicoin Capital's disclosure that it had been accumulating a significant ZEC position since February, with partner Tushar Jain framing the thesis around California's proposed wealth tax as a warning shot for what comes next globally. Jain's argument: Bitcoin is censorship-resistant for transactions but transparent for balances, leaving a tax authority with a blockchain explorer able to seize visible holdings.
Why it matters
Roughly 30% of ZEC's circulating supply — about 5 million of 16.7 million coins — now sits in shielded addresses, up from 8% in early 2024, a record level. Public transactions have stayed flat near 8,500 per day, but real activity is migrating into the shielded pool where standard counters can't see it, which is the structural change Multicoin's thesis is built on. The rally is happening alongside record-high shielded supply, the on-chain signature CoinDesk Research linked to actual adoption rather than past speculative rotations into the token.
Market impact
Volume crossed $1.3 billion in the past 24 hours, and ZEC remains up more than 1,400% on the year. The token still trades below its November 2025 high near $750, with the next resistance band sitting at $600–$650 where ZEC consolidated through late 2025. What traders are watching is whether shielded supply keeps expanding alongside the price — past ZEC rallies decoupled from that metric and reverted; this one is moving with it.
Frequently asked questions
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Why did Zcash (ZEC) surge nearly 30% on Tuesday?
ZEC rallied on a Multicoin Capital disclosure that the fund has been accumulating a significant Zcash position since February, arguing shielded transactions protect holders from growing government scrutiny of visible crypto balances.
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How much in futures liquidations did the ZEC rally trigger?
The move triggered roughly $62 million in futures liquidations across about 5,000 traders, with almost $60 million from short positions and just over $3 million from longs.
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What percentage of ZEC supply is in shielded addresses?
About 30% of ZEC's circulating supply — roughly 5 million of 16.7 million coins — now sits in shielded addresses, up from 8% in early 2024, the highest level on record.
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How does Zcash's shielded pool work?
The shielded pool uses zero-knowledge cryptography to hide transaction details — sender, recipient, and amount — while still letting the network verify the transactions are valid.
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What is the next resistance level for ZEC?
The next resistance sits in the $600 to $650 zone where ZEC consolidated through late 2025, with the November 2025 high near $750 still overhead as the larger technical ceiling.
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