Grayscale Sees More Room for Zcash Price Growth Amid Recent Rally

Grayscale's Head of Research Zach Pandl believes that Zcash may have further upside despite its recent 19-fold price increase over the past year. The asset manager thinks that Zcash could challenge Bitcoin's network effects with capabilities such as financial privacy, development addressing cybersecurity threats, and cross-chain reach through intents technology.

Grayscale's 'Currencies' sector groups crypto assets primarily designed to serve as digital money or stores of value, with Bitcoin accounting for 93% of the category by market capitalization. Zcash's market capitalization is less than 1% of Bitcoin's, at approximately $13.74 billion compared to Bitcoin's $1.56 trillion.

Grayscale calculated hypothetical prices for ZEC if it were to capture a larger share of Bitcoin's market capitalization over five years, with estimates ranging from $1,622 at 2% market share to $8,109 at 10% market share.