Bitcoin, XRP Have Utility but One Privacy Token Is Gaining Market Share

Zcash (CRYPTO: ZEC) has surged from roughly $60 to $1,500 over the past year, but Grayscale argues the privacy-focused cryptocurrency may still have room to capture significantly more market share. The bullish assessment comes as Bitwise Chief Investment Officer Matt Hougan separately identifies privacy, and Zcash specifically, as an emerging long-term crypto narrative that could challenge the sector’s established leaders. Has Zcash Valuation Hit Ceiling? On Sept. 29, Grayscale Head of Research Zach Pandl explained that the magnitude of Zcash’s sharp move can be justified by its low starting valuation and potentially large addressable market. A year ago, Zcash’s market capitalization represented less than 0.1% of Bitcoin’s (CRYPTO: BTC) and it now accounts for almost 1.5%. While substantial, Grayscale argues that level is not historically extreme. XRP (CRYPTO: XRP) is currently valued at nearly 6% of Bitcoin’s market cap, while Bitcoin Cash, Litecoin and Dash each reached at least 3% of Bitcoin’s valuation during the 2017-2018 cycle. That history suggests Zcash could potentially take additional share without reaching unprecedented relative valuations. Will Privacy Become Major Crypto Theme? Hougan’s argument centers less on a specific Zcash price target and more on the broader investment case for privacy developing into a major pillar of crypto adoption. In an interview with the New Era Finance Podcast on Sept. 29, Hougan said Zcash is making a case that privacy deserves a place among crypto’s most important long-term themes. He identified Zcash as one of the potential challengers to his existing crypto "Mount Rushmore" of Bitcoin, Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL) and Chainlink (CRYPTO: LINK), alongside emerging narratives around Hyperliquid (NASDAQ:PURR), DeFi and AI. Hougan did not provide a ZEC price target or point to a specific near-term catalyst but stresses on the long-term opportunity of the coin. Image: Shutterstock Read Also: Bitcoin, Zcash, Hyperliquid in Focus as Industry Expert Sees Crypto Nearing a 'Major Turning Point'