Zcash (ZEC) extended its powerful rally on Friday, rising about 20% in 24 hours and briefly breaking above $1,020. The move toward the $1,000 mark triggered a wave of liquidations among traders positioned for a decline.

ZEC began the session near $828 before climbing to approximately $1,023, according to CoinGecko. Its 24-hour trading volume reached roughly $1.2 billion, lifting the token’s market capitalization toward $17 billion.

The rally proved particularly painful for short sellers. Around $36.6 million in leveraged ZEC positions were liquidated during the period, with shorts accounting for approximately $34.5 million, based on liquidation data.

Short liquidations occur when a cryptocurrency rises enough to exhaust the collateral supporting a bearish leveraged trade. Exchanges then automatically close those positions. The resulting forced purchases can intensify an upward move because traders must buy ZEC to cover their shorts.

Zcash has delivered outsized returns well beyond the latest surge. The token has gained roughly 94% over the past month and more than 2,300% over the last year, making it one of the strongest performers among large crypto assets.

ZEC Futures Attract More Capital

The spot rally has been accompanied by increased derivatives activity. Open interest in ZEC futures reached approximately 2.3 million ZEC, worth around $2.3 billion, indicating that traders have been increasing their exposure as prices rise.

The token’s recent strength has coincided with several developments involving both institutional access and network technology.

Grayscale’s spot Zcash ETF started trading on NYSE Arca in late August under the ticker ZCSH. The launch converted a trust previously restricted to accredited investors into an ETF accessible to investors through ordinary brokerage accounts.

Digital Currency Group, which owns Grayscale, was also reportedly involved in non-binding discussions through a subsidiary to acquire 200,000 ZEC, according to CoinDesk.

Zcash Improves Mobile Transaction Speed

Developers have simultaneously been working to improve the network’s performance.

The team behind Zakura, a Zcash node launched in July, introduced new cryptographic tools earlier this month that substantially reduced the time required to create private transactions on mobile devices.

Transaction construction that previously required more than three seconds can now take less than 200 milliseconds on mobile. The upgrade forms part of a broader effort to make Zcash faster and more practical for everyday payments.