Zcash Crash Just Wiped Billions From the Privacy Coin's Market Cap—Can ZEC Recover?
Zcash fell sharply after a four-year-old vulnerability was found in one of its private transaction pools, a flaw that could have enabled unlimited ZEC minting if exploited. The bug was patched, but uncertainty over whether it was abused drove panic selling, with ZEC dropping more than 40% intraday and about 35% over 24 hours, briefly below $300. The selloff erased its recent rally from under $200 in March to $675 in late May and wiped billions from market value. Analysts said the move reflected fear of undetectable counterfeiting more than the bug itself. Rebuilding momentum now likely requires a broader privacy-coin narrative, a major protocol catalyst, or renewed rotation into privacy assets. Arthur Hayes said he sold his ZEC position, though he still views privacy as valuable.
