Zcash (ZEC), the leading privacy-focused cryptocurrency, has surged over 1,200% year-to-date, briefly surpassing Cardano (ADA) in market capitalization on May 10. This remarkable rise pushed Zcash into the 11th spot by market cap, highlighting its growing appeal among investors. In contrast, Cardano has seen a 66% decline over the same period.
Market strategist Alex Carchidi attributes Zcash’s rally to concentrated accumulation and increased on-chain privacy usage. Notably, Multicoin Capital and Cypherpunk Technologies have significantly increased their Zcash holdings, with the latter acquiring approximately 295,000 ZEC. Additionally, the use of Zcash’s privacy layer has grown, with 30% of its circulating supply now held in shielded addresses.
Meanwhile, Cardano faces challenges in gaining traction as a smart-contract platform. Its total value locked (TVL) has dropped to $137 million, ranking 26th among blockchains. Carchidi suggests that while a potential spot ADA ETF could boost Cardano, it may not suffice without a strong investment thesis. Currently, Zcash trades at around $545, while ADA is priced near $0.27.
