Zcash Reclaims $8B Market Cap After 80% Rally
Zcash rallied about 80% from its June 5 low to trade near $478 on June 9, restoring an $8 billion market cap and erasing about $11.5 million in short positions despite an Orchard bug.
Zcash climbed roughly 80% from a June 5 low near $265 to trade around $478 on June 9, pushing its market value back above $8 billion. The price spike removed about $11.5 million in short positions within 24 hours and also triggered roughly $2.43 million in long-liquidation orders. The move occurred as bitcoin slipped below $63,000 and several altcoins moved independently of bitcoin’s direction.
The rally marked an 11.3% gain on June 9 and put Zcash ahead of Monero in recent performance, though ZEC remains below its pre-June 5 peak of just over $600. Traders and analysts pointed to technical buying and renewed interest in privacy-focused assets after a period of momentum that included endorsements from high-profile industry figures.
The earlier sell-off followed disclosure of a vulnerability in Orchard, the shielded pool added to Zcash in 2022. Orchard uses zero-knowledge proofs to hide transaction details. The disclosed issue does not show evidence that the flaw was exploited, but it raises questions about the ability to prove balances inside the shielded pool and about supply accounting.
Eunice Wong wrote on X that the likelihood of an exploit was extremely low and that some traders had overreacted, adding that she saw ZEC’s long-term privacy case intact. Matthew Brienen, managing partner at Cryptocharged, described his recent trimming of ZEC as a risk-management decision rather than a loss of conviction, and he explained that the Orchard problem represents an inability to prove supply integrity rather than a confirmed inflation event. He noted that if counterfeit notes exist, they might remain hidden until redemptions force a reconciliation.
Developers and members of the Zcash community have said they are pursuing audits and fixes to address the vulnerability. Market participants continue to weigh the size of any potential risk against demand for privacy features. ZEC’s price remains discounted relative to its recent high, while trading volumes and liquidations reflect continued volatility.
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