Grayscale says Zcash has three features Bitcoin lacks and could gain share

Grayscale says Zcash could capture Bitcoin market share because it has three features Bitcoin lacks. Bitcoin represents 93% of the Currencies category by market capitalization under Grayscale's Crypto Sectors framework. Grayscale Research head Zach Pandl said earlier rivals such as Litecoin did not seriously challenge Bitcoin. Pandl attributed Bitcoin's position to deep network effects and limited diversification by investors within the category. Bitcoin traded near $78,645 with a market capitalization of about $1.58 trillion. Zcash traded near $790 with a market value of about $13.3 billion. Zcash ranked 12th overall. Zcash was worth less than 1% of Bitcoin after rising about 19-fold over the past year. Grayscale launched the first spot ZEC exchange-traded product. ZEC reached its highest price since 2018. Pandl identified financial privacy as Zcash's first advantage. Pandl linked that advantage to the spread of artificial intelligence-powered surveillance. Pandl said Zcash developers continue to address cybersecurity risks, including future quantum threats to classical cryptography. Pandl identified intents technology in modern wallets as Zcash's third advantage. Pandl said Zcash does not require widespread merchant adoption because users or their artificial intelligence agents can use it as a private asset hub with universal connectivity through intents. Grayscale used a five-year supply estimate for its valuation model. The model valued ZEC at $1,622 if Zcash reaches 2% of Bitcoin's market share. The model valued ZEC at $8,109 if Zcash reaches 10% of Bitcoin's market share. Based on a ZEC price near $790, those scenarios imply gains of about 105% and 927%. Grayscale described the projections as hypothetical and illustrative. Grayscale labeled Zcash high-risk. Grayscale warned that any gains would not be linear. Pandl said transparency, simplicity, and liquidity support Bitcoin's position.