Zcash Shielded Supply Rises — ZEC Eyes Monero’s Market Lead After 50% Rally

• Zcash shielded supply surge and price rally fuels speculation of challenging Monero dominance.
• ZEC trades at $360 with eyes on $390 to $400 if momentum continues.

Zcash (ZEC) has drawn renewed interest from privacy-focused traders following a sharp increase in shielded wallet activity and a notable price rally. The shielded supply now stands at 4.5 million ZEC, while the price jumped 50% over the past week.

Zcash operates as a privacy-optional blockchain where holders may move coins into shielded addresses based on zero-knowledge proofs. Shielded holdings allow transfers without disclosing sending address, receiving address, or transaction amount.

Three privacy upgrades have supported the network since launch called Sprout, Sapling, and Orchard. Each upgrade introduced improved shielded pools while keeping compatibility for older structures. Orchard has led the most recent accumulation of shielded coins, becoming the area where most hiding activity now concentrates.

Source: The Block Data

Zcash Rise Puts Pressure On Monero

A growth in shielded coins suggests stronger trust in the private transfer system. When more coins are held in shielded addresses, it expands the group of hidden participants. This makes it harder to trace any single user. At the same time, the open ledger shows less liquid supply, reflecting that many users prefer privacy over open visibility.

Monero remains the most recognized privacy coin by long-standing usage among traders focused on privacy. However, the rise in Zcash shielded supply combined with recent price strength has opened speculation that Zcash may challenge Monero’s leading position.

Prediction platform Polymarket currently shows a 78% chance that Zcash could overtake Monero in market capitalization before December 31. Supporters argue that the rise in shielded supply shows growing user interest in stronger privacy features.

Source: Polymarket

Mert Mumtaz of Helius Labs stated, “Calling ZEC ‘encrypted bitcoin’ makes sense, in that it has the same tokenomics and SoV appeal but is private.” The statement supports the idea that Zcash may appeal as a privacy-preserving store of saved funds rather than purely a tradeable asset.

ZEC Price Levels and Market Signals

ZEC is trading near $360 at press time, showing a 14.86% gain over the past 24 hours. The token remains close to Monday’s peak at $374. Traders are watching the $390 region as the next resistance on short-term charts. A clean break above that level could open the way toward $400, with $436 marked as the next upside zone if buyers continue to hold control.

Source: TradingView

Technical indicators show MACD is close to forming a bullish crossover, which would signal growing momentum if confirmed. RSI near 65 shows steady buying pressure without immediate signs of overheating. 

At the same time, Former BitMEX CEO Arthur Hayes shared a bullish view, stating:

Nothing stops this train. $ZEC to $10k.

 If Zcash fails to hold above $350, charts point to support near the 50-period EMA at $304.