Zcash (ZEC) broke through the $400 barrier on May 3, reaching a high of $424 for the first time since January 2026, as renewed interest in privacy coins ignited a sharp rally. The privacy-focused cryptocurrency outperformed the broader market, which added over $50 billion in total capitalization, with ZEC posting a 24-hour gain of roughly 8%.
ZEC Leads Altcoin Gains, Closing in on Monero
Market data shows ZEC peaked at $424 at 9:35 p.m. EDT on Sunday before slightly retreating to $414. Despite the pullback, the coin held nearly 8% gains for the day, making it one of the top performers among high-cap altcoins. Its weekly gains expanded to approximately 17%, matching Dogecoin's 12% as the only two high-cap altcoins with double-digit weekly returns.
The rally marks a continuation of ZEC's recovery from its year-to-date low on March 8, when the asset dipped below $200 for the first time since October 2025. Prior to this, ZEC had lost its position as the top privacy coin by market capitalization to rival Monero (XMR). However, since hitting its low, ZEC has surged over 100%, pushing its market cap near $7 billion and closing the gap with XMR.
Influencer Backing: Silbert and Pal Fuel Privacy Narrative
The sudden price action appears closely tied to comments from industry heavyweights. Barry Silbert, founder of Digital Currency Group (DCG) and chairman of Grayscale, weighed in on X on May 3, drawing parallels between Zcash and Bitcoin's 2015 trajectory. He wrote: "In 2015, we had no clue there was $2 trillion in demand for a global, decentralized digital store of value like bitcoin. In 2015, we also thought bitcoin was, generally speaking, a private way to store and send value around the world. Zcash will benefit from now knowing better." A day earlier, Silbert responded to news that Brazil had banned crypto for cross-border payments, arguing that such a ban is impossible on a cryptocurrency "you can't see."
Raoul Pal, founder of Global Macro Investor, joined the conversation, calling ZEC a "younger sibling" of Bitcoin. YouTube influencer Jesus Martinez went even further, stating: "Zcash will do what Bitcoin couldn't do." The consensus among these influencers suggests that growing demand for privacy could allow ZEC to capture 10% of Bitcoin's capital, a thesis that has fueled speculative buying.
Short Liquidations Exceed $10 Million as Bullish Momentum Builds
The rapid ascent led to significant forced liquidations of bearish positions. Over a 24-hour period, more than $10.6 million in ZEC short positions were liquidated, including a single largest liquidation of $1.1 million. In contrast, long positions saw only around $900,000 in liquidations, bringing total liquidations to $11.5 million. This imbalance underscores a shift in market sentiment toward bullishness, with shorts capitulating as the price surged.
Analysts note that if ZEC can sustain its position above $400, its market cap could top $7 billion, challenging Monero's dominance in the privacy coin sector. With renewed endorsements from influential figures and a growing narrative around financial privacy, Zcash appears poised for further gains in the near term.