Zcash (CRYPTO: ZEC) is up 30% in the last 24 hours as Multicoin Capital disclosed a significant position and the privacy coin’s quantum resistance narrative gains traction.

Multicoin Reverses 2019 Stance On Privacy Coins

Multicoin Capital built a significant Zcash position, Co-Founder and Managing Partner Tushar Jain revealed at Consensus Miami. 

The disclosure marks a sharp reversal from Multicoin’s 2019 essay arguing that “privacy is a feature of valuable cryptocurrencies, not a product offering in and of itself.”

Jain explained that Bitcoin can withstand protocol-level freezes, but public ownership still leaves holders exposed if a government, creditor, or other actor can connect coins to a person. 

Tokens with built-in privacy features like ZEC aim to mitigate that risk by obscuring transaction details and user identities.

The firm previously argued users should not have to sell Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) for ZEC to get privacy and that Zcash’s privacy design came with tradeoffs in auditability and programmability. 

ZEC is now trading near $570, up about 122% over the past month and more than 1,500% in the past year.

FCMP++ Upgrade And Quantum Resistance Drive Narrative

The rally accelerated after Zcash’s FCMP++ upgrade entered its next testnet phase on May 6. 

The upgrade improves privacy scalability, shielded transaction efficiency, and overall transaction speed.

The bigger theme attracting attention is quantum resistance. Through its broader ZODL roadmap, Zcash has positioned itself around quantum-resistant cryptography as concerns about long-term blockchain security continue growing.

The privacy and quantum-resistant crypto sector surged more than 22% today, with ZEC leading the move. 

Around 20% to 25% of circulating ZEC is held in encrypted addresses with about 30% of transactions involving the shielded pool.

Robinhood Listing And Grayscale ETF Fuel Squeeze

Analyst Wise Advice noted that Multicoin’s position combined with Robinhood listing opened access to millions of retail users while a Grayscale ETF narrative emerged. 

With 30%+ of supply shielded, the liquid float is tightening as new demand meets lower available supply.

Zenrock’s wrapped ZEC product on Solana (CRYPTO: SOL) crossed $15 million in volume late last year, linking Zcash privacy demand with Solana trading activity. 

Vibhu Norby, chief product officer at the Solana Foundation, said Solana builders are working on a privacy product to preserve DeFi composability.

The Technical Setup

The cup and handle pattern formed between December and March, bottoming near $50 to $60, with the handle completing through April’s descending wedge.

Since April lows around $270, ZEC has gained approximately 113% in under five weeks.

The cup and handle measured move projects toward $750 to $800 if $600 breaks cleanly. Key resistance sits at $600, then $700. Support clusters at $500 to $520.

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