"Privacy demand is increasing in Zcash, the price is rising."

Zcash (ZEC) has experienced a remarkable price increase in recent weeks due to a renewed interest in privacy-focused cryptocurrencies. Enabling users to conduct transactions anonymously, Zcash secures a solid place in the crypto ecosystem with its privacy options.

The Zcash network allows users to transfer their assets into a "privacy pool," keeping their transaction history concealed. This privacy is achieved through zk-SNARKs technology, which verifies transactions without revealing any information about the sender, receiver, or amount of ZEC involved. As a result, Zcash has developed three different privacy protocols to date: Sprout, Sapling, and the latest version, Orchard. Each new version works in harmony with previous pools, strengthening the Zcash ecosystem.

Recently released charts indicate that the Orchard protocol accounts for a significant portion of the recent increase in hidden supply. The rise in hidden supply on Zcash is seen as a sign of growing confidence in the network’s privacy features and an indication that its technical infrastructure is strengthening. Users are transferring more ZEC to private addresses, expanding the anonymity pool, which makes tracking more difficult and enhances the network's privacy strength.

However, this situation can also reduce visible liquidity on-chain, complicating price discovery. Experts note that the increasing hidden supply reflects ZEC's actual usage rate. Users actively opting for these privacy features supports the notion of Zcash's user base being privacy-oriented. As the theme of privacy rapidly re-emerges in the crypto ecosystem, some analysts predict that Zcash could strengthen its role as a "privacy refuge."

Nevertheless, this development focused on privacy may also bring new discussions on the regulatory front. It is crucial for investors to monitor Zcash's potential advancements and how its privacy features will impact the cryptocurrency market.