Zcash Rally Is “Narrative Driven”, Not Fundamentals Says F2Pool Co-Founder

Zcash (ZEC) has made a stunning jump into crypto’s top 10, reaching a $19.48 billion market cap after its price surged above $1,250. ZEC is up more than 2,200% in a year and 125% in 30 days.

But F2Pool co-founder Chun Wang says the rally is being narrative-driven by a story rather than real fundamental growth.

Zcash: Big Market Cap Does Not Mean a Coin Earned Its Place

In a recent tweet, Wang called the Zcash rally a “narrative bid,” questioning whether Zcash’s roughly $19 billion market cap reflects its actual use and fundamentals.

“Zcash’s latest rally is a narrative bid. A big market cap does not mean a coin earned its place.” 

Meanwhile, the rally has been driven by several factors, including Grayscale’s U.S. spot Zcash ETF, tighter supply, and short covering. But Wang argued that these factors may explain the price rise but do not prove stronger network use or fundamentals.

He further said that sitting close to networks such as Solana and Hyperliquid by market cap does not mean Zcash offers similar real-world use.

Wang Questions Zcash’s Early Token Distribution

Wang’s main criticism is not simply that Zcash’s price is too high. His argument is that ZEC’s market ranking has risen much faster than the actual strength and use of the network.

One of his biggest concerns is how Zcash was funded during its early years. Wang pointed to the 20% Founders’ Reward that was taken from every block reward during the first four years.

That allocation amounted to about 2.1 million ZEC, equal to 10% of the 21 million maximum supply, and went to founders, employees, advisors, and early investors. After that system ended, a similar share later returned through a development fund.

Wang argues that this history makes it difficult to compare Zcash with Bitcoin’s mining reward model.

Governance and Security Add to the Debate

Wang also raised concerns about Zcash’s governance and privacy model. The project has faced disputes involving the Electric Coin Company and Zcash Foundation, while the entire ECC team left in January 2026.

He also pointed to a vulnerability in the Orchard shielded pool that was disclosed in May 2026 after reportedly existing for around four years. 

Developers found no evidence that counterfeit ZEC had been created, while the later Ironwood upgrade closed the old pool.

For Wang, these issues matter because Zcash’s valuation has now reached levels comparable to major networks.