Zcash surges to $750! Shielded pool supply exceeds 23%, trading volume surpasses Ethereum.

Zcash shielded pools have reached 23% of the total supply, up from 18% in October, indicating a steady increase in network privacy adoption. The rise in shielded transactions coincided with a significant price surge, with ZEC soaring from about $400 on November 1st to a peak of $750, an 87% increase. Banks and financial institutions are exploring zero-knowledge systems, with institutional privacy needs becoming a core driver behind Zcash’s price and usage growth.

Shielded Pools Surpass 23% Real Usage Outpaces Speculation

(Source: The Block)

Zcash’s shielded pools function by hiding transaction details, making it more difficult to trace the network as more transactions enter private mode. As previously reported in The Block’s data and insights newsletter, shielded transactions require direct interaction with the blockchain, making them a useful indicator of real network activity rather than purely speculative positioning.

The increase from 18% in October to 23% in November represents a 5 percentage point growth, meaning hundreds of millions of dollars’ worth of Zcash are actively entering privacy mode. This trend contrasts sharply with many other tokens, where most trading occurs through derivatives rather than spot markets. The growth in Zcash’s shielded pools reflects genuine on-chain activity, not leveraged speculation.

The growth of protected supply shares similarities with Ethereum’s staking dynamics. Currently, about 30% of ETH is staked to secure the network. Notably, as Zcash approaches this threshold, it may experience similar volatility or resistance. Both indicators reflect active participation in network operations rather than passive holding. If Zcash’s shielded pools continue to grow at the current rate, it could reach the 30% milestone within a few months.

Price movements aligned with on-chain activity suggest a positive development trend. As shielded transactions increased, ZEC’s price surged from about $400 on November 1st to $750 last Friday, with trading volumes across exchanges also rising sharply. This synchronicity indicates that increased attention to the protocol is translating into real usage rather than mere speculation.

Historic Moment: Zcash Trading Volume Surpasses Ethereum

At the time of publication, Zcash ranked second among the highest 24-hour trading volume assets on the largest compliant US crypto exchange, surpassing Ethereum’s $345 million and Bitcoin’s $288 million. This is a historic milestone, as Zcash is typically considered a niche privacy coin with a market cap far below Ethereum and Bitcoin. Being able to temporarily surpass these major cryptocurrencies in trading volume demonstrates unprecedented market interest in Zcash.

This volume surge is not just speculative frenzy. The data showing concurrent growth in shielded supply indicates many traders are moving Zcash into privacy mode, which requires direct interaction with the blockchain—signifying real on-chain activity rather than internal exchange trades. In contrast, many tokens’ trading volumes mainly come from perpetual contracts and futures markets, with less connection to actual token transfers and usage.

The US’s largest compliant crypto exchange’s user base is primarily US investors, who tend to prioritize compliance and regulatory certainty. The volume explosion on this platform suggests that regulatory developments are easing previous concerns about privacy coins. Recent US government actions, such as the delisting of Tornado Cash, have provided policy support for privacy technologies and their distinction from illicit financial activities.

Zcash vs. Mainstream Coins: 24-Hour Trading Volume Comparison on US Largest Exchange

Zcash: 2nd place, over $345 million

Ethereum: $345 million

Bitcoin: $288 million

Institutional Privacy Needs Become a Core Driver

(Source: CoinGecko)

During recent market downturns, privacy tokens have defied the trend, with prices and popularity surging. Most discussions focus on consumer-oriented projects like Zcash. However, deeper drivers stem from institutional demand. Banks and financial institutions are exploring zero-knowledge (ZK) systems capable of enabling private transactions on blockchain, a technology known for transparency and immutability.

As Matter Labs CEO Alex Gluchowski explains, “Privacy is divided into cryptopunk privacy and institutional privacy. Cryptopunk privacy refers to account-level privacy, while institutional privacy refers to system-level privacy. Institutions need full visibility into their data flows while keeping that data confidential from others.” This distinction explains why Zcash’s shielded pool growth may reflect not only individual user activity but also testing and deployment of institutional applications.

Gluchowski first encountered Bitcoin in 2014 while working at a startup, but during the ICO boom, Ethereum’s smart contracts created new use cases, shifting his focus. Scalability issues, especially with zero-knowledge proofs (ZK-proofs), led him to found Matter Labs, developer of Ethereum layer 2 ZKsync. His deep understanding of privacy tech gives him industry authority.

According to CoinGecko, as of early November, over 140 companies hold about $137 billion in crypto assets on their balance sheets. Gluchowski tells Cointelegraph that due to confidentiality obligations, financial institutions are moving payment and settlement processes onto public blockchains in the next phase, only feasible with reliable privacy layers. Banks, asset managers, and corporations cannot conduct transactions on transparent ledgers if they cannot conceal internal fund flows, counterparties, or operational details.

Regulatory Reversal Unlocks Zcash

(Source: US Department of the Treasury)

Privacy was underexplored in early stages mainly due to regulatory pressure. Privacy coins were delisted from exchanges, and the US government sanctioned Tornado Cash. However, since the current US administration has adopted a more nuanced approach, this sentiment has reversed, with the government distinguishing privacy as a technical capability from illicit financial uses.

“The difference is night and day. Before, no one wanted to touch cryptocurrencies—they were taboo. Now, the attitude is more like, ‘We need to accept this technology, or we’ll be left behind,’” Gluchowski says. The delisting of Tornado Cash has been reversed, providing policy support for privacy tech. Interest in Zcash has surged again amid this regulatory shift.

Gluchowski believes that while on-chain data is the most obvious driver, the more significant factor is institutional requirements. This is why Ethereum’s ecosystem is refocusing on privacy, viewing it as a system-level requirement enabling institutions to transact on shared infrastructure while maintaining full internal visibility and control.

The privacy modes needed by institutions differ from those used by consumers. Banks and corporations require a private execution environment where they can see every transaction under their control, but outsiders cannot see any related information. Gluchowski states, “Only when data remains within your control devices can you truly guarantee privacy. Sharing data with others and signing nondisclosure agreements is not absolute privacy—it’s just paper.”

Early enterprise blockchain experiments faced this issue. Financial institutions used frameworks like Hyperledger Fabric or Corda to deploy private chains for internal data protection, but these networks remained isolated from the broader liquidity and settlement infrastructure built around public blockchains. Zcash’s zero-knowledge proof technology offers a solution by combining privacy with the liquidity and interoperability of public blockchains.

Consumer crypto applications continue to expand, but Gluchowski believes the next wave of scaling will belong to institutions that cannot operate on transparent ledgers. Privacy is gradually becoming a operational requirement for participating in shared settlement infrastructure. The rise of Zcash’s shielded pools from 18% to 23% may be an early signal of this institutional-level deployment.