Grayscale: "Zcash is a rival asset to Bitcoin…its market share will grow"

Asset manager Grayscale has published an analysis suggesting Zcash (ZEC) is "highly likely to gain a larger market share."

Zach Pandl, head of research at Grayscale, said on the firm’s official website on the 18th (local time) that "Zcash is a rival asset to Bitcoin (BTC) with one of the strongest prospects for meaningfully expanding its market share over time."

Grayscale sees Zcash’s biggest competitive edge as "privacy." Pandl noted that "all Bitcoin transactions are visible on a public ledger," whereas "Zcash supports 'shielded' transactions that can conceal the sender, recipient, and balances." He added that "privacy will become essential for certain types of transactions," and that "in our view, Bitcoin will struggle to meet this demand."

Grayscale also emphasized that "Zcash has momentum." Pandl said, "Zcash is a nearly 10-year-old project, but it is now entering a new phase," adding that "use of shielded technology is increasing, which shows the market’s interest in privacy-preserving digital currencies." He also said that "new capital to support wallet development and Zcash mining is flowing into the ecosystem."

Pandl also suggested Zcash’s market capitalization could increase more than 18-fold going forward. "Zcash’s current market cap is around $4 billion," he said, adding that "if Zcash captures just 5% share of the decentralized digital currency sector, its value could grow 18 times from current levels."