Zcash Is Only 1% of Bitcoin’s Market Cap, but Its Volatility Is More Than 3 Times Higher

Zcash has been on an absolute tear. The privacy-focused cryptocurrency rose over 142% in the past month alone and reached $1,236.

Grayscale Head of Research Zach Pandl believes that its smaller market capitalization and significantly higher price volatility compared with Bitcoin could make options an especially useful tool for investors seeking risk management or alternative income.

Options Opportunity Bitcoin has become considerably less volatile as the asset has matured. In its early years, BTC saw realized annualized volatility of around 125%.

Over the past year, however, that volatility has averaged roughly 40%, putting Bitcoin at a level similar to the so-called “Magnificent 7” large-cap technology stocks. Zcash, however, remains a much smaller and more volatile asset.