- Arkham revealed over $420 billion in Zcash transaction volume has been linked to identifiable users and entities.
- Zcash uses zk-SNARKs for privacy, but transparent addresses still expose large portions of network activity onchain.
- Shielded Zcash transfers remain private, though analysts can still track funds entering and exiting private pools.
Arkham published a breakdown of Zcash transaction tracking after renewed interest in privacy-focused cryptocurrencies during 2026. The report explained how Zcash uses zk-SNARK cryptography to hide transaction details, while still exposing large portions of activity through transparent addresses. According to Arkham, more than $420 billion in Zcash volume has already been linked to known entities and institutions.
How Zcash Handles Private Transactions
Zcash launched in October 2016 through the Electric Coin Company, led by cryptographer Zooko Wilcox-O’Hearn. The blockchain borrowed Bitcoin’s Proof-of-Work model, supply cap, and UTXO structure. However, developers added zero-knowledge proofs to create optional transaction privacy.
According to Arkham, Zcash operates with two address formats. Transparent addresses work similarly to Bitcoin and expose transaction activity publicly. Meanwhile, shielded addresses conceal senders, receivers, and transferred amounts using zk-SNARK technology.
The network supports four transaction structures with different privacy levels. Transparent-to-transparent transfers remain fully visible onchain. However, shielded-to-shielded transfers hide nearly every transaction detail except network fees.
Notably, Arkham said most Zcash activity still uses transparent addresses. Exchanges and institutional platforms reportedly favor visible transfers to meet compliance requirements. As a result, large portions of Zcash transaction history remain accessible to blockchain analytics platforms.
Arkham Tracks Billions In Zcash Activity
Arkham stated it labeled more than half of all Zcash activity despite the network’s privacy-focused design. The platform attributed over $420 billion in transaction volume to identifiable users and organizations.
According to Arkham, shielded transactions remain untraceable once assets move completely inside private pools. However, analysts can still monitor funds entering and leaving those pools through transparent addresses.
The report also highlighted several tracked wallets tied to major cases. One wallet belonged to the U.S. government after authorities seized Zcash from AlphaBay founder Alexandre Cazes in 2017.
Arkham additionally identified a trader who bought $4.49 million worth of Zcash during an October market crash. The wallet later transferred funds to Gemini after reportedly generating a $6.6 million profit.
