Grayscale: Zcash's Privacy Features Could Become Essential in AI Era; Value Could Rise 9-Fold if Market Share Reaches 5%

Grayscale's Zcash research report noted that as AI development brings new means of financial surveillance, Zcash's privacy features could become a necessary function in the AI era. Zcash uses zero-knowledge proofs to enable shielded transactions, hiding senders, recipients, and amounts, offering cash-like privacy attributes. Currently, shielded transactions account for approximately 90% of Zcash's transaction volume, with a shielded supply of approximately 4.2 million ZEC (25% of circulating supply). Grayscale noted that Zcash's market cap is approximately $8 billion, representing only 0.6% of its classified "monetary crypto assets" sector (with a total market cap of $1.4 trillion). If its share in this sector reaches 5%, ZEC's value would be 9 times its current level. The report suggests that the market's current valuation of Zcash reflects the assumption that "privacy will remain niche," and if investors eventually conclude that privacy deserves a moderate premium, current valuations may be undervalued. On the risk side, the report mentioned long-term risks including regulation and quantum computing, but believes Zcash's shielded technology and selective disclosure tools provide a path toward compliance.