[DigitalToday reporter Yoonseo Lee (이윤서)] Zcash (ZEC) surged shortly after news of a two-week ceasefire between the United States and Iran, emerging as one of the top gainers.

On April 8 (local time), blockchain media outlet Cryptopolitan reported that Zcash rebounded strongly, rising above $300. As bitcoin (BTC) recovered to around $71,000, risk-asset appetite spread to altcoins.

Zcash recently rose above $240 during its rally, and its weekly gain topped 28%. Its 24-hour trading volume increased to about $800 million, nearing a monthly high. Open interest (OI) in the derivatives market also rose 26% in a day, and trading was mostly concentrated on Binance.

Some in the market said the move showed the crypto market could try to change direction even amid prolonged bearish sentiment. Funds flowed into assets seen as likely to show a strong directional move, driving a short-term surge in Zcash. Open interest, however, remained below levels seen at the end of 2025. Current open interest stands at $386 million, a more limited breakout than during the sharp spike in November 2025.

Questions have also been raised about how long the rise can last. During the rally at the end of 2025, Zcash faced suspicion that influencer-led promotion had overheated. It later suffered a steep decline as some large holders sold part of their stakes. Some have pointed out that this rebound, too, may be driven by short-term supply and demand rather than a structural trend reversal.

Even so, Zcash continues to maintain a community base. Its mindshare, a measure of share on social media, was tallied at 0.5%, up 25% in a day. That figure was interpreted as a sign it is maintaining relatively high exposure compared with other altcoins and tokens. It suggests interest in privacy coins, despite frequent short-term overheating, has not fully faded.

The market is watching most closely for the possibility of a short squeeze. Some analysts noted that Zcash is still viewed with suspicion and that the surge could be the result of a short squeeze. Over the past day, $2.85 million worth of short positions in Zcash were liquidated. Based on currently open short positions, additional liquidations could extend to around $330, but there were also concerns that gains could slow and face resistance in that zone.

Zcash's strength also affected other privacy coins. Monero (XMR) rose 3% to above $330, and smaller privacy coins also gained alongside the broader recovery in the crypto market.

On fundamentals, growth in Zcash's shielded supply stands out. Zcash's shielded supply continued to rise quietly even after an influencer campaign slowed, and it has now topped 5.17 million tokens, a record high. Mining levels are also near an all-time high regardless of market volatility.

On-chain indicators do not immediately guarantee price strength. The current rally could be rejected, and Zcash could return to a bearish structure. Use cases in Solana DeFi, once cited as part of the Zcash narrative, have also weakened as growth in Solana-based DeFi has slowed after the Drift Protocol hack. Against this backdrop, Zcash has entered a phase where it must prove it can sustain its presence in a risk-on market rather than ending as a short-term speculative spike.