Zcash (ZEC) has erupted past key resistance levels this week, driven by surging derivatives flows and renewed product momentum from its development team.
ZEC is trading around $136.29, up ~14.63% in 24 hours, with total futures open interest nearing $149.41 million.
Derivatives surge drives momentum
Open interest has exploded, rising approximately 79.40% in 24 hours, pushing aggregated OI to $50.9 million on coin- and stablecoin-margined contracts. Meanwhile, funding rates have flipped positive, albeit modestly, as longs begin paying shorts — a sign that leveraged buyers are taking control.
CoinGlass data shows that futures volume has ballooned to $2.81 billion in 24 hours, with spot volume at $427.78 million. These shifts suggest capital is audibly rotating into ZEC.
Additionally, the ZEC derivatives page confirms these trends: open interest, funding, and liquidation metrics are all in focus.
What’s fueling the rally
One key catalyst is Grayscale’s launch of a Zcash trust. According to FXStreet, the trust has already amassed assets under management above $46 million and helped drive institutional interest into ZEC.
In parallel, ZEC’s on-chain product roadmap continues to evolve. ECC’s Zashi wallet recently introduced advanced privacy and routing tools (e.g. Tor integration, off-ramps) in earlier releases, which have been cited in crypto research for boosting user confidence in the protocol’s utility.
The halving narrative also remains in play. Although the second Zcash halving occurred in November 2024, cutting block rewards to 1.5625 ZEC, the effects are still reverberating in trader positioning and long-term supply expectations.
Risk factors to watch
With funding turned positive and open interest elevated, ZEC is entering a sensitive regime. If momentum weakens, crowded long positions may unwind swiftly. Overbought technicals (e.g. high RSI) could also invite short-term profit taking.
Another warning flag is liquidity clusters just above current price levels, which some analysts suggest may act as resistive walls unless absorbed by strong buying pressure.
