Zcash surges but faces scrutiny over fundamentals

Zcash surged 2,300% in a year, entering the top 10, but faces criticism from F2Pool’s Chun Wang over governance, token distribution, and real-world utility.

Zcash (ZEC) saw a remarkable surge, climbing over 2,300% within a year and briefly entering the top 10 cryptocurrencies by market capitalization. Prices peaked at $1,249 before settling around $1,130–$1,145. This rally was driven by several factors, including the launch of the first US spot ZEC ETF by Grayscale, the Ironwood upgrade, short liquidations, and renewed interest in privacy coins. However, F2Pool co-founder Chun Wang criticized the rally, labeling it narrative-driven and raising concerns about Zcash’s fundamentals, governance, initial token distribution, and the impact of the Orchard vulnerability. Wang argued that Zcash’s high market cap does not reflect real-world usage or utility, especially when compared to networks like Solana and Hyperliquid. He also pointed out issues with Zcash’s optional privacy model and historical governance disputes. Despite the price surge, Zcash’s fundamentals and long-term viability remain under scrutiny, with critics suggesting the rally is fueled more by speculation than genuine adoption or technological progress.