Grayscale says ZEC remains undervalued despite privacy-driven upside

Zcash could expand its market share on rising demand for financial privacy in the AI era, and its current valuation remains undervalued, according to Grayscale Research head Zach Pandl. Pandl said Bitcoin has strong network effects, accounting for 93% of the market capitalization of the “currency” category in Grayscale’s internal crypto classification, but argued Zcash offers differentiated features from BTC, including financial privacy, development aimed at preparing for quantum computing threats, and connectivity with other blockchains. He added that although ZEC has risen around 19-fold over the past year, its market capitalization is still under 1% of Bitcoin’s, indicating those features have not yet been fully priced in. Pandl also cautioned that investing in ZEC carries high risk and does not guarantee a continued price increase even if the project succeeds.