ZCash (ZEC) Sees Significant Surge in Demand Amid “Uptober” Rally
ZCash (ZEC) has experienced a remarkable increase in value, more than doubling in the last week due to rising demand for data protection coins during the wider “Uptober” rally. On October 3, the coin rose from around $50 to over $130 and, according to Coingecko, reached $135.54.
The latest rally has brought ZEC to its highest level since April 2022, although it continues to be almost 96% below its all-time high of $3,193 in 2016. 
ZEC has increased 21.5% in the last 24 hours, making it the best digital asset among the most important tokens. The price rose to 133.2% over seven days, leading the wider data protection coin sector. 
ZK-Snark Technology Drives ZCash Market Capitalization Above $1.8 Billion
The market participants attribute the move to the ZK-Snark technology, the zero-knowledge proof system, which underpins ZCash’s shielded transactions. This technology can be used to prove that a transaction has occurred without disclosing details such as the sender, recipient, or amount.
Zcash, originally from Bitcoin’s codebase, offers both transparent and shielded transactions, addressing users who want the possibility of privacy in a period of intensifying supervision. The increase also coincided with broader discussions about digital surveillance and central bank currencies (CBDCs).
Mert Mumtaz, CEO of Helius and former Coinbase engineer, argued that privacy is not negotiable and a crypto ecosystem without private money is “a dystopian nightmare”. The institutional mood added to the dynamics, with Grayscale announcing that its ZCash trust is now open to private placement, resembling accredited investors in a structure similar to its Bitcoin and Ethereum products.
Grayscale ZCash Trust and Market Capitalization
Grayscale ZCash Trust is open for private placement for accredited investors. The announcement contributed to increasing trust among traditional investors, with ZEC’s market capitalization rising from $700 million to over $1.8 billion in early September.
The Zcash development team was also active, with the ZCash Foundation recently setting an 18-month roadmap that includes NU7 upgrades and audits for Zcash Shield Assets (ZSAS). These steps aim to improve scalability, security, and interoperability, possibly increasing throughput.
EU to Ban Privacy Coins Under New AML Rules by 2027
The European Union is advancing with a ban on data protection conservation cryptocurrencies as part of its new anti-money laundering regulation (AMLR), which will come into force in 2027. The rules prohibit banks, financial institutions, and crypto asset service providers from dealing with anonymity-enhanced tokens such as Monero and Zcash, as well as anonymous crypto accounts.
Article 79 of the AMLR explicitly prohibits the maintenance of anonymous accounts or services that enable transaction anonymization. The framework not only covers data protection coins but also other financial products developed to remove property or transmission.
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