Zcash surged beyond $800, breaking its January 2018 high, as futures activity reached billions of dollars and Grayscale advanced its effort to launch a spot ETF.
The privacy-focused token jumped 38% on Saturday, fueled by growing comparisons to bitcoin, heavy derivatives trading and renewed optimism surrounding Grayscale’s ETF plans.
Zcash was designed with several elements inspired by Bitcoin, including a 21 million supply ceiling, proof-of-work consensus and periodic halving events, while also offering shielded transactions for enhanced privacy.
Recent CoinDesk Research reports have examined Zcash’s technical roadmap, including the Tachyon upgrade and the network’s preparations for potential quantum-computing risks.
ZEC climbed above its previous January 2018 record near $800 and also surpassed last November’s peak around $750.
During the latest 24-hour session, Zcash moved between roughly $589 and $851, producing a price range of about 45%.
Digital Currency Group has ties to several developments driving attention toward Zcash, with its subsidiary Grayscale playing a central role in the ETF push.
Grayscale filed its fourth amendment on Aug. 18 to pursue the conversion of its Zcash Trust into a spot ETF on NYSE Arca under the symbol ZCSH.
While the amended filing represents another step toward the proposed ETF, approval has not been granted and the application remains subject to SEC scrutiny.
The filing also said DCG International Investments is in preliminary, non-binding discussions to acquire around 200,000 ZEC through the trust, worth approximately $163 million at Saturday’s market price.
Zcash futures generated about $4.55 billion in trading volume Friday, compared with roughly $553 million in spot volume, while open interest reached around $1.35 billion.
Over the next 24 hours, futures volume stood near $2.24 billion, equal to roughly 16% of Zcash’s market capitalization, according to CoinDesk Data.
The heavy use of leverage can magnify upward moves but can also accelerate selloffs, leaving Zcash vulnerable to sharp reversals.
The token experienced such a reversal in June after a vulnerability was identified in the Orchard shielded pool used for private transactions.
With a market capitalization of approximately $13.87 billion, Zcash has risen to No. 12 among cryptocurrencies and now ranks above all other privacy-oriented tokens.
