Grayscale Projects 18x Upside for Zcash on Privacy Demand

Grayscale Head of Research Zach Pandl says Zcash is uniquely positioned to capture market share from Bitcoin by offering something the flagship cryptocurrency cannot — transaction privacy.

Pandl's March 18 research note projects an 18x upside for ZEC if it reaches 5% of the broader digital currency segment, which spans fifteen assets worth around ₱95.93 trillion ($1.6 trillion). Bitcoin dominates that market with roughly 90% share. Zcash holds just 0.3% with a market cap near ₱239.81 billion ($4 billion).

The core argument centers on shielded transactions. Pandl said Zcash offers technology that hides senders, receivers, and balances, adding that privacy will be essential for certain users and transactions that Bitcoin cannot accommodate. The nearly decade-old blockchain is entering a new chapter as adoption of its privacy features picks up and fresh capital flows into wallet development and mining infrastructure.

BitMEX co-founder Arthur Hayes echoed the bullish sentiment with a ₱59,954 ($1,000) near-term target for ZEC and a longer-term projection of ₱599,535 ($10,000). Cypherpunk Technologies CIO Will McEvoy called it crypto's most mispriced asset, while Alliance DAO co-founder Qiao Wang labeled ZEC the last 1000x opportunity in the sector.

Grayscale launched its Zcash Trust back in 2017 alongside Ethereum and Ethereum Classic products, giving institutional investors regulated exposure years before the broader ETF wave. The firm's recent push into diversified products like the Grayscale Coindesk Crypto 5 ETF reflects growing demand for alternatives beyond Bitcoin.

Pandl acknowledged the trade-offs, noting that Zcash is smaller and more volatile than Bitcoin, which translates to a higher risk profile. ZEC traded at ₱13,964.97 ($232.93) at press time.