Zcash's Scheduled Halving in November 2025 and Its Impact on Privacy-Focused Cryptocurrencies

The halving scheduled for November 2025 for (ZEC) marks a significant turning point for privacy-oriented digital currencies, with substantial effects on market trends, investor confidence, and the wider cryptocurrency landscape. As Zcash gets ready to decrease its block reward by half—lowering miner compensation from 3.125 to 1.5625 ZEC per block—this move highlights the protocol’s commitment to a deflationary structure similar to Bitcoin, while also strengthening its distinct advantages in a regulatory-heavy financial environment . This report explores Zcash’s historical performance after previous halvings, the evolving competitive landscape among privacy coins, and the investment prospects arising from this fundamental change.

Historical Performance and Scarcity-Driven Momentum

Zcash’s halving events have historically demonstrated the impact of scarcity on price movements. After the 2020 halving, ZEC experienced a surge exceeding 500%, and in the fourth quarter of 2024, the coin rallied by 92% despite overall market instability

. The upcoming November 2025 halving comes amid exceptional growth: ZEC has already climbed 1,172% since the start of the year, reaching $589 as of November 6, 2025, driven by increasing interest from institutional investors. The Grayscale Zcash Trust, which oversees $137 million in assets, signals a growing preference for privacy-focused cryptocurrencies with practical use cases .

This upward trend is supported by more than just speculation. Zcash’s shielded transactions now make up 28% of its total supply, providing a rare mix of privacy and regulatory adaptability. In contrast to Monero (XMR), which enforces privacy by default and has faced removal from exchanges, Zcash’s optional privacy lets users select between transparent and shielded addresses, making it more attractive to institutions that prioritize compliance

. This flexibility has allowed Zcash to benefit from the scarcity narrative following halvings, without limiting its appeal to mainstream users.

Privacy-Coin Sector Dynamics: Zcash vs. Monero

The November 2025 halving coincides with a broader shift in dominance within the privacy-coin market. In late 2025, Zcash’s market value temporarily overtook Monero’s, reaching $7.2 billion compared to XMR’s $6.3 billion

. Several factors are driving this change:

1. Technical Catalysts: The halving event for Zcash has immediately boosted trading activity and price surges. Experts suggest that the reduced block rewards will likely speed up miner consolidation and decrease inflation from new supply, which has historically led to price increases
   according to industry analysis
   .
2. Regulatory Adaptability: Zcash’s model of optional privacy fits well with changing regulatory standards, especially in regions focused on anti-money laundering (AML) measures. Monero’s strict privacy, while effective, has limited its acceptance among institutional investors
   according to market reports
   .
3. Influencer Endorsements: Prominent voices in the crypto space, such as analyst Arthur Hayes, have brought more attention to Zcash, with Hayes forecasting a potential price of $10,000 per ZEC—a 1,700-fold increase from its November 2025 value
   according to analyst commentary
   .

Broader Market Trends and Investment Considerations

The surge in Zcash following its halving is part of a larger movement: privacy coins have outperformed the general crypto market downturn, with assets like

, , and posting gains of up to 90% in the last quarter . Analysts link this strength to rising interest in transaction privacy as becomes more widely adopted. Georgii Verbitskii from TYMIO points out that Zcash’s privacy features are increasingly appealing to Bitcoin holders looking to diversify into assets that offer built-in privacy .

Interest from individual investors has also grown, with Google Trends indicating record levels of attention on privacy coins. Slava Demchuk of AMLBot observes that even seasoned Bitcoin investors are reallocating some of their BTC into ZEC to maintain financial privacy as regulatory oversight intensifies

. This trend shows that privacy is becoming a mainstream requirement for investors navigating a more transparent financial environment.

Risks and Strategic Recommendations

Despite the strong narrative following the halving, investors should be aware of the risks involved. The privacy-coin market remains highly volatile, and Zcash’s price is vulnerable to global economic changes and regulatory shifts. For example, stricter regulations on privacy features could reduce demand, especially in countries with tough AML policies.

From a strategic perspective, investors might consider a diversified approach:
- Short-Term: Taking positions in Zcash before the halving, given its historical price surges and current momentum.
- Long-Term: Spreading investments across other privacy-oriented assets such as Decred or Secret, which provide different privacy solutions and are valued at lower multiples

.
- Hedging: Employing derivatives or options to protect against potential losses, especially as the overall market remains exposed to macroeconomic risks.

Conclusion

The November 2025 halving for Zcash is more than just a technical milestone—it serves as a catalyst for reshaping how privacy is valued in the crypto world. By curbing supply inflation and enhancing its role as a privacy-focused asset, Zcash stands to gain from both increased scarcity and greater institutional interest. Nevertheless, the future success of privacy coins will depend on their ability to adapt to regulatory demands while continuing to innovate technologically. For investors, this halving presents a rare chance to participate in a sector that is becoming increasingly vital to the evolution of decentralized finance.