Zcash tops $1,000 as ETFs and miners now fuel the rally

Zcash has just surpassed $1,000 for the first time under normal market conditions. ZEC reached $1,023 on Friday, taking its one-month gain to around 94% and its market capitalization close to $17 billion. This time, the short squeeze does not explain everything: Grayscale’s Zcash ETF is attracting capital while new miners are rapidly joining the network.

Zcash ETF already attracts $34 million

Launched on NYSE Arca on August 25, Grayscale’s ZCSH ETF recorded at least $34.4 million in net inflows in less than two weeks.

The increase is consistent with Bref Crypto’s analysis of Grayscale’s Zcash bet. The asset manager notably believes that privacy could restore value to digital currencies capable of shielding transaction data.

Inflows are already accelerating.

On September 2, ZCSH absorbed $12.6 million in a single day, its best result since launch. The current $34.4 million figure could even slightly underestimate actual inflows, as some data for September 3 and 4 remains incomplete.

For an asset that was still trading around $200 in March, the change in scale has been abrupt.

Grayscale now considers Zcash a “satellite holding” around a portfolio core dominated by Bitcoin. Its latest analysis of digital currencies notably highlights Zcash’s maximum supply of 21 million ZEC and its shielded transactions.

Miners are rushing into Zcash

The price is now attracting machines.

The network’s computing power, measured here in sol/s, stood at around 25 GSol/s at the end of August. It briefly exceeded 30 GSol/s, an increase of close to 20% in just a few days.

This influx of miners boosts the computing power deployed to secure the blockchain. It also increases competition for the rewards.

The effect is already visible.

An Antminer Z15 Pro currently generates around $708 in gross revenue per MWh of electricity. On August 24, when ZEC was worth less than $900, that figure reached approximately $727.

The price is rising, yet the machine’s unit revenue is declining slightly.

Why? More miners are sharing the same rewards.

To understand this mechanism, Bref Crypto also explains the role of ASICs in cryptocurrency mining.

The Zcash rally is becoming more serious

ZEC now has several sources of momentum: ETFs, privacy, mining, a short squeeze and price momentum.

A few hours earlier, around $34.5 million in short positions had already been liquidated as the token crossed $1,000. The derivatives market therefore amplified the rise. Inflows into ZCSH and the increase in sol/s tell another story: new capital and new infrastructure are arriving at the same time.

That obviously does not eliminate the risk.

Grayscale itself estimates Zcash’s recent volatility at around 268%. The network has also just experienced a serious technical alert involving the Orchard pool. Bref Crypto had documented this flaw and the new security challenge facing privacy-focused cryptocurrencies.

At $1,000, Zcash is therefore no longer simply the forgotten privacy coin staging a violent rebound. Wall Street now has an ETF through which to buy it, while miners are adding hardware to secure its network.

True confirmation will come if these two trends survive the price rally.