Zcash Soars Past $1,200 as ETF Inflows Fuel Record-Breaking Rally

Zcash's ZEC token has broken through a significant psychological barrier, reaching levels above $1,200 for the first time in nearly a decade. The surge is largely driven by unprecedented ETF inflows and a punishing short squeeze, which have reshaped the privacy coin's standing in the cryptocurrency market.

The rally accelerated dramatically in early September, with ZEC breaking through the $1,000 threshold on September 4 before continuing its climb. By Sunday morning in Asia, the token was trading around $1,231, roughly 20% above its previous close of $1,025.

Market capitalization has now exceeded $20 billion, propelling Zcash past Dogecoin to claim the tenth spot among the world's largest cryptocurrencies. Trading volume has exploded in tandem, with 24-hour activity topping $1.45 billion according to CoinMarketCap data.

The derivatives market has become a central feature of this price action, with futures open interest climbing to a record $2.43 billion, according to Benzinga. This level of leveraged positioning makes the rally increasingly fragile, as the same mechanism that fueled the squeeze could accelerate a reversal in either direction.