Grayscale Research sees Zcash capturing Bitcoin market share as privacy demand surges

Grayscale Research argues that surging demand for on-chain privacy could drive users and transaction volume toward Zcash, which offers shielded transactions and zero-knowledge proofs enabling selective disclosure. The report suggests Zcash could capture a measurable share of activity and value that might otherwise flow to Bitcoin, particularly for users prioritizing privacy. The key implication for Bitcoin is increased competitive pressure to enhance privacy capabilities or cede transactional market share, with regulatory responses to privacy-focused assets likely shaping the outcome.