Thursday’s macro selloff hit most major cryptocurrencies, but Zcash remained one of the strongest relative performers in the market.
CoinDesk reported Wednesday that Grayscale’s ZCSH fund had surpassed $500 million in assets and held more than 550,000 ZEC, equivalent to roughly 3% of Zcash’s circulating supply.
ZEC subsequently continued trading above $1,200 during portions of Thursday’s session even as Bitcoin fell below $77,000 and Dogecoin, BNB, XRP and other major tokens weakened.
The relative strength matters more than the absolute percentage gain.
An asset that holds recent gains while the broader market is undergoing a macro liquidation is demonstrating a different demand profile than one that only rallies when Bitcoin rises.
The Zcash move still carries considerable risk. The recent advance has been unusually rapid, derivatives shorts have already suffered significant liquidations, and the Grayscale fund’s total assets should not be confused with purely new outside inflows.
Still, the combination of regulated fund demand, reduced freely circulating supply and renewed interest in privacy technology has created one of the most persistent altcoin narratives of September.
TOKEN RECON ASSESSMENT
Zcash is now facing a more useful test than another breakout.
Can it retain relative strength during a Bitcoin drawdown?
Watch ZCSH creations and redemptions, fund-held ZEC, shielded transaction activity, spot volume and futures open interest.
If ZEC remains firm while leverage declines, the privacy trade has stronger evidence of genuine spot demand.
Sources: CoinDesk and Grayscale data.
