Legendary trader Arthur Hayes reveals that Zcash has become the second-largest holding in his family office Maelstrom, just behind Bitcoin. Over the past month, Zcash has surged from a low of $137 to over $730, an increase of more than 400%, with a market cap of $8.9 billion. Other privacy coins such as Dash, Decred, and ZKsync also recorded weekly gains exceeding 100%.
Arthur Hayes Family Office’s Heavy Position in Zcash Sparks Attention
(Source: CoinMarketCap)
“Due to the rapid price increase, ZEC is now the second-largest liquid holding in MaelstromFund’s portfolio after BTC,” Arthur Hayes wrote in a post on X (formerly Twitter) on Friday. This disclosure comes as Zcash’s price has soared significantly, and the public endorsement from one of the most influential figures in the crypto industry adds institutional credibility to Zcash’s explosive rally.
Arthur Hayes holds an undeniable position in the crypto market. His family office Maelstrom focuses on crypto investments, and its investment decisions are often seen as market indicators. When Hayes publicly states that Zcash has surpassed all other assets in his portfolio except Bitcoin, the significance of this signal is evident. Notably, Hayes emphasizes the word “liquidity,” implying that Maelstrom may also hold other illiquid assets or long-term locked positions, but among tradable assets, Zcash has now risen to second place.
The timing of this disclosure is also noteworthy. Hayes chose to reveal his holdings during a phase when Zcash’s price was pulling back from its peak, rather than announcing a position early at a low point. This approach indicates that his disclosure is driven more by genuine investment performance rather than market manipulation. For crypto investors, following the smart money is a key strategy, and Hayes’s public statement undoubtedly provides strong narrative support for Zcash.
Zcash Surges Over 400% in a Month and Remains Strong After Pullback
In the past month, Zcash climbed from a low of $137 to over $730, a rise of more than 400%, a rare phenomenon among mainstream cryptocurrencies. In contrast, Bitcoin and Ethereum only traded within ranges during the same period, highlighting Zcash’s independent trend as a leading privacy coin. As of press time, ZEC is trading at $548, down about 11.8% in the last 24 hours, with a market cap of $8.9 billion.
Despite a roughly 25% pullback from the $730 high, Zcash remains highly active. Its 24-hour trading volume increased by 139% to $4.63 billion, surpassing many of the top ten cryptocurrencies by market cap. High trading volume generally indicates ample market liquidity, with significant new capital and investors entering the Zcash market, rather than just early holders taking profits.
Zcash’s circulating supply is 16.28 million ZEC out of a maximum supply of 21 million. The fully diluted valuation (FDV) is approximately $11.5 billion. This supply model is identical to Bitcoin’s, with a fixed cap of 21 million, providing long-term scarcity value. About 77.5% of ZEC is now in circulation, suggesting relatively low inflationary pressure on the supply side.
From a technical perspective, Zcash’s rise from $137 to $730 involved multiple breakthroughs of key resistance levels, indicating strong bullish momentum. The current price of $548 has formed a new support zone; if it can hold this level, Zcash may digest profits and challenge previous highs again. However, a drop below the $500 psychological level could trigger a deeper technical correction.
Deep Logic Behind the Collective Surge in Privacy Coins
Other privacy coins also experienced strong weekly gains, such as Dash (+>100%), Decred (+>100%), and ZKsync (triple-digit gains). This sector-wide rally suggests a reassessment of privacy technology by the market, rather than individual token hype. Meanwhile, major cryptocurrencies like Bitcoin and Ethereum remain range-bound amid overall market uncertainty.
Three Catalysts for the Collective Explosion in Privacy Coins
Regulatory Changes: Increased global financial monitoring and KYC/AML requirements have heightened demand for genuine privacy protection technologies.
Technological Maturity: Advances in cryptographic techniques like zero-knowledge proofs make private transactions more efficient and practical.
Institutional Entry: Public endorsements from notable investors like Arthur Hayes break the stigma of privacy coins being solely speculative or risky.
Zcash’s hybrid mode supports both transparent and encrypted transactions, making it a more versatile choice. Users can opt for public transactions (similar to Bitcoin) or fully private transactions using zk-SNARKs zero-knowledge proof technology. This flexibility allows Zcash to meet compliance needs while providing privacy. Like Bitcoin, Zcash has a fixed supply of 21 million and uses proof-of-work (PoW) for security, giving it similar decentralization and security attributes.
Compared to other privacy coins, Zcash’s advantages lie in its technological leadership and regulatory flexibility. Monero offers strong privacy but has been delisted from many exchanges. Dash’s privacy features are weaker and more focused on fast payments. Zcash’s selective privacy mode strikes a balance between regulatory acceptance and technological innovation, which is why it remains one of the largest privacy coins by market cap.
Grassroots Privacy Movement Behind Zcash’s Revival
Alex Bornstein, Executive Director of the Zcash Foundation, states that Zcash’s recent resurgence is entirely natural, driven by growing public concern over government surveillance and data control. Bornstein told Cointelegraph’s Chain Reaction that this renewed interest reflects a strong narrative around digital privacy and financial autonomy.
He clarified that the Zcash Foundation (a US-registered nonprofit) and ZEC’s renewed attention are “absolutely unrelated.” He said, “We are surprised to see these mentions start to appear. Then to see this wave grow and peak—that’s extraordinary.” This clarification is important because it shows that Zcash’s explosion is not driven by marketing campaigns from the foundation or project team but is a genuine market-driven demand.
From a macro perspective, global attention to digital privacy is reaching new heights. EU data protection laws, increased US financial oversight, and China’s digital currency initiatives all heighten public awareness of financial privacy importance. Zcash’s technology directly addresses this need, with zero-knowledge proofs allowing transaction verification without revealing details, theoretically balancing compliance and privacy.
Furthermore, with AI development enhancing data tracking and analysis capabilities, traditional pseudonymous transactions like Bitcoin are increasingly traceable through on-chain analysis. Professional blockchain analytics firms can identify most Bitcoin transactions’ real identities. In this context, privacy-preserving technologies like Zcash become even more valuable.
Future Outlook and Investment Logic for Zcash
When Zcash’s market cap surpassed $10.6 billion, it briefly approached the top ten cryptocurrencies. Although it has since fallen back to $8.9 billion, maintaining current market momentum and technological progress could see it re-enter the top ten. The key is whether Zcash can find a sustainable balance between privacy protection and regulatory compliance and attract more institutional investors like Arthur Hayes.
From an investment perspective, Zcash offers a unique value proposition: among cryptocurrencies, it is one of the few that combines technological innovation (zero-knowledge proofs), clear use cases (privacy), and a supply model identical to Bitcoin. Hayes’s heavy holdings indicate that professional investors recognize Zcash’s potential role in future financial systems.
