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Grayscale Sees Zcash Gaining Market Share Against Bitcoin

XRP Binance Scarcity Index Hits 20-Month Low. Source: Photo By: Kaboompics.com via Pexels

Grayscale has highlighted Zcash (ZEC) as a digital currency with significant room for growth as demand for private crypto transactions increases.

Zach Pandl, Grayscale’s Head of Research, believes Zcash could gradually capture a larger share of Bitcoin’s dominant market position. Grayscale currently places Bitcoin (BTC), XRP, Litecoin (LTC), and Zcash among the leading assets in its Currencies Crypto Sector.

The broader sector includes around 15 cryptocurrencies with a combined market capitalization of approximately $1.6 trillion. Bitcoin accounts for close to 90% of that value, leaving rival digital currencies competing for a relatively small portion of the market.

While XRP and Litecoin have long promoted faster or cheaper payments as alternatives to Bitcoin, Zcash differentiates itself through privacy. The cryptocurrency uses zero-knowledge proofs known as zk-SNARKs, which allow users to conceal transaction amounts and wallet information.

Grayscale said Zcash has increased its market share considerably over the past year. According to the asset manager, ZEC was worth roughly 0.1% of Bitcoin’s market capitalization a year ago, when its price stood near $60. That figure has since climbed to around 1.5%, with ZEC recently trading near $1,500.

Privacy adoption has also increased. By mid-2026, approximately 90% of Zcash transactions reportedly involved shielded transfers. Grayscale believes this feature could become increasingly valuable as concerns over digital surveillance and financial privacy grow.

Zcash’s market capitalization has surged alongside its price. The cryptocurrency’s valuation climbed from approximately $4 billion in March to around $24.27 billion, compared with Bitcoin’s roughly $1.56 trillion market cap.

ZEC recently traded near $1,431, representing an almost 19-fold increase over the past year.

The sharp rally strengthens attention around Grayscale’s Zcash thesis but also creates uncertainty for investors. With ZEC already posting extraordinary gains, the key question is whether growing demand for crypto privacy can drive further market-share gains or whether much of that potential is already reflected in its price.

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