In a report, Grayscale analyst Michael Zhao stated that the development of AI surveillance and on-chain transparency could drive privacy from a niche need to a core financial function, and the crypto market is currently underpricing this possibility. The report points out that Zcash uses zero-knowledge proof technology to hide transaction details, and its shielded transactions now account for the majority of on-chain activity, indicating that the demand for privacy already exists. ZEC currently represents only about 0.3% of the $1.6 trillion cryptocurrency market, which Grayscale believes reflects the market expectation that privacy features will remain marginal; if this expectation changes, there could be significant upside potential. ZEC rose to nearly $700 in late 2025 before subsequently retreating by over 60%. The report also highlights long-term risks such as regulatory uncertainty, network upgrade execution risks, and quantum computing. As of press time, ZEC is up 5% in the past 24 hours, priced at approximately $224.80.