BitMEX has released a research report in which its analysts have highlighted Zcash (ZEC) as potentially one of the most compelling opportunities left in cryptocurrency markets, (questionably) referring to it as “the last 1000x in crypto.” The update shared by BitMEX examines why the privacy-focused coin, despite past volatility and skepticism, continues to demonstrate sound fundamentals that could drive renewed investor interest.
Zcash recently staged another notable rally, climbing 32.9 percent in just seven days to close around $323 on April 8, 2026, lifting its market capitalization past $5.2 billion.
The asset maintains Bitcoin-like monetary mechanics: a hard-capped supply of 21 million coins, proof-of-work consensus, and four-year halving cycles.
Following the November 2024 halving, block rewards stand at 1.5625 ZEC, producing roughly 3.95 percent annual inflation—higher than Bitcoin’s current rate but still predictable and disinflationary over time.
Of the 16.65 million coins currently in circulation, 5.18 million (31.1 percent) sit in shielded pools, underscoring genuine demand for private transactions rather than mere speculation.
Fundamentally, Zcash functions as Bitcoin-style digital money with built-in confidential settlement.
Using zero-knowledge proofs, it lets users verify transactions without exposing amounts, addresses, or balances on the public ledger.
While Bitcoin solved scarcity and decentralized issuance, it left privacy unaddressed. As Bitcoin gains mainstream traction through ETFs, institutions, and regulatory scrutiny, its transparent blockchain increasingly appears as a liability rather than a feature.
Tech industry professionals, including Naval Ravikant, have framed Zcash as complementary “insurance” against Bitcoin—protecting users from surveillance in an era when visible on-chain wealth invites risk. But this does seem like an exaggeration since BTC is open-source and can be upgraded in the foreseeable future to address any potential threats or issues.
Recent infrastructure upgrades have finally closed the usability gap that once plagued the project.
The rebranded Zodl wallet, which secured $25 million from top investors, now offers seamless in-app on-ramps and off-ramps via NEAR Intents.
Users can convert Bitcoin, USDC, or Solana assets into shielded ZEC privately and execute cross-chain payments without leaking transaction history.
These digital tools transform Zcash from a niche privacy experiment into practical electronic cash.
Despite these developments, ZEC trades at only 0.37 percent of Bitcoin’s market cap, suggesting significant undervaluation if privacy becomes a priority. But again, this simple assessment assumes that BTC protocol developers don’t have the ability or inclination to make certain codebase modifications or upgrades, much like the over-hyper quantum computing threat narrative (which does not hold much ground if we think practically).
BitMEX outlines several rerating scenarios. For instance, reaching 1 percent of Bitcoin’s capitalization implies roughly $700 per ZEC (2.2x from current levels), while 5 percent points to around $3,500 (nearly 11x upside).
Even conservative targets, such as surpassing XRP’s market cap or hitting analyst price forecasts around $1,000, point to multi-fold gains. However, these appear to be very tall claims at this point as XRP has come out the winner following very lengthy SEC court cases and it has shown its resilience over the years not to mention significant TradFi integrations and partnerships.
According to BitMEX research analysts, Zcash is no empty narrative play.
They have argued that its protocol rests on sound technology—including recent upgrades that removed trusted setups—and benefits from an active, decentralized developer community. But this developer group remains quite small in terms of its expertise and resources when compared to larger ecosystems for Ethereum and other major networks like Solana.
Despite this, long-term holders continue to accumulate, reflecting conviction beyond short-term hype. But this is more of a speculative, “number go up” stragtegy.
And of course, significant risks remain, but as optional privacy adoption grows gradually, regulatory pressure on privacy coins persists, and scaling proposals are still in discussion.
Overall, the BitMEX analysis positions Zcash as a direct, liquid bet on the market’s underappreciated need for confidential settlement layered atop sound money principles. But this narrative seems too bullish given the current crypto market sentiment. Moreover, Zcash does not have nearly the network effects that are now firmly pointing towards greater Bitcoin and Ethereum adoption.
The stage is now set for Bitcoin and Ethereum to continue capturing more of the market share without much room for privacy focused coins like Zcash or Monero. That’s because much like quantum resistance, other default or optional privacy capabilities can simply be added to the Bitcoin and Ethereum protocols. But over the years, exchanges like BitMEX and others have pushed such narratives perhaps in an attempt to promote some of their related products and possibly boost their own platform’s trading activity.