Zcash Surpasses $1,000 as ETF Demand Grows and Mining Activity Surges

Zcash’s native token climbed above $1,000 for the first time in years on Friday, excluding a brief volatile stretch shortly after its initial exchange listing back in 2016. The token reached a high above $1,020, extending its monthly gains to nearly 94% and pushing its total market value close to $17 billion. Just a few months earlier, in March, ZEC was trading around $200.

ETF Launch Fuels Renewed Investor Interest

Much of the recent momentum follows the late-August launch of a dedicated Zcash exchange-traded fund by Grayscale, which converted its existing Zcash trust into the first US-listed ETF offering direct exposure to the token. Since its debut, the fund has attracted tens of millions of dollars in net inflows, with its strongest single-day performance occurring earlier this week. Reported inflow figures may be slightly understated, as data for the most recent trading days remains incomplete.

Mining Competition Intensifies as Prices Rise

The renewed interest in Zcash has also extended to its mining ecosystem, with the network’s overall computing power climbing significantly over the past few weeks. However, this surge in mining competition has put pressure on profitability. According to recent industry analysis, leading mining hardware is now generating slightly lower revenue per unit of electricity compared to late August, despite the token’s higher price, reflecting how increased competition among miners can offset gains from rising prices.