Grayscale still sees upside in Zcash despite its sharp move over the past year. On Sept. 30, Grayscale research head Zach Pandl said ZEC had climbed from about $60 to about $1,500 over the previous year, yet the firm does not believe the asset has reached the upper bound of its valuation. In Grayscale’s view, the rally reflects both Zcash’s previously low starting valuation and the size of its potential addressable market.
Pandl pointed to market-cap data to support that case. About a year ago, ZEC’s market capitalization was less than 0.1% of Bitcoin’s. That figure has now risen to roughly 1.5%. Grayscale argued that, while the shift is notable, it is not extreme when compared with past crypto cycles. The firm noted that XRP’s market cap is currently about 6% of Bitcoin’s, and that during the 2017-2018 cycle, XRP, BCH, LTC, and DASH each at one point reached at least 3% of Bitcoin’s market value.
Grayscale expects demand for privacy-preserving technology to keep rising. It said Zcash could continue expanding its market share if it maintains privacy features that outperform those of other cryptocurrencies.
Grayscale still believes Zcash has not hit the ceiling of its valuation, even after a steep rise in ZEC over the past year.
In a post published on Sept. 30, Grayscale research head Zach Pandl said ZEC had climbed from about $60 to about $1,500 over the last year. He said the move reflected both Zcash’s previously low valuation starting point and the size of its potential market.
According to the figures cited, ZEC’s market capitalization was less than 0.1% of Bitcoin’s a year ago and has now risen to roughly 1.5%. Grayscale said that change is significant, but not unusual by crypto-market standards.
The firm compared the current ratio with other large crypto assets. XRP’s market capitalization is now about 6% of Bitcoin’s, while during the 2017 to 2018 cycle, XRP, BCH, LTC, and DASH each reached at least 3% of Bitcoin’s market value.
Grayscale said demand for privacy-preserving technology is likely to continue growing. If Zcash can keep offering privacy features superior to those of other cryptocurrencies, it still has room to expand its market share, according to the firm.
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