Is it a signal of privacy coin revival... What does Zcash's recovery to $580 mean?

▲ Zcash (ZEC) / ChatGPT generated image ©

Zcash, a leading privacy coin, is once again attracting market attention amid the resolution of US regulatory risks and expectations for network upgrades.

According to investment media FXStreet on May 20 (local time), the Zcash (Zcash, ZEC) Foundation announced in its Q1 report that it held approximately $36.7 million in liquid assets as of March 31. The average monthly operating cost was about $272,539, with labor costs accounting for the largest portion. Following the report's release, ZEC rose approximately 3.4% in one day, trading above $580.

The Foundation emphasized that it achieved significant results this quarter in securing regulatory clarity, developing core infrastructure, and maintaining network stability. In particular, the US Securities and Exchange Commission (SEC) concluding its investigation procedure, which had been ongoing since August 2023, without any separate sanctions, was cited as a key issue. Alex Bornstein, a director at the Foundation, commented, “We simultaneously achieved regulatory clarity and laid the groundwork for network upgrades even during a period of ecosystem transition.”

The Foundation explained that the Zcash network operated stably despite internal conflicts and personnel departures at Electric Coin Company (ECC). It reiterated that block generation was maintained without interruption and user funds were safely protected. The Foundation described this as “evidence that decentralization is actually working.”

In the technology development sector, the Zebra node update was mentioned as a key advancement. Version 4.0.0 enhanced network observability, and Version 4.3.0 included fixes for two security vulnerabilities and initial changes for ZIP-235. The Foundation also stated that development of FROST v3, a multi-signature technology, and the Z3 stack, along with preparations for Network Upgrade 7 (NU7), are underway. After the termination of the DNS seeder operated by ECC, new Rust-based DNS seeders were also deployed in the US and Europe.

Community activities were also vibrant. The Foundation hosted the virtual event ‘Zcomm 2026’ to discuss collaborations with Web3Privacy Now, Aztec, and others. In a community poll regarding NU7, Project Tachyon and Orchard Quantum Recoverability received over 90% support. The Foundation outlined NU7 development progress, Z3 stack enhancement, and continued Zebra benchmarking as priority tasks for the second quarter.

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