Grayscale Research says Zcash can challenge Bitcoin’s 93% sector share

  • Grayscale says Zcash can expand its market share relative to Bitcoin.
  • Zcash’s $13.74 billion market cap equaled about 0.88% of Bitcoin’s on Aug. 29.
  • The Zcash ETF began trading under ZCSH on NYSE Arca on Aug. 25.

Zcash (ZEC) has room to capture part of Bitcoin’s (BTC) market share, Grayscale Research says, citing financial privacy, cybersecurity development, quantum-risk work and intents technology. Bitcoin represents 93% of the Currencies category in Grayscale’s Crypto Sectors framework, while Zcash’s market capitalization remained below 1% of Bitcoin’s despite rising roughly 19-fold over the past year. As of Aug. 29, Bitcoin’s market capitalization was $1.56 trillion and Zcash’s was $13.74 billion, or about 0.88% of Bitcoin’s. Grayscale modeled hypothetical ZEC prices of $1,622, $4,054 and $8,109 if Zcash reached 2%, 5% and 10% of Bitcoin’s market capitalization, respectively, while stressing that the scenarios are not price forecasts. Grayscale’s Zcash ETF began trading on NYSE Arca under the ticker ZCSH on Aug. 25 after moving from OTCQX, giving investors spot ZEC exposure without directly purchasing tokens or managing wallets and private keys. Zcash uses proof-of-work, has a fixed supply of 21 million coins and uses zero-knowledge proofs to conceal transaction details. Its intents technology can coordinate cross-chain transactions based on users’ desired outcomes, including exchanging other digital assets for ZEC.

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