ZEC Tops $1,200 as Cat-Themed Memecoin Delivers $2.8M to Holders

A Solana-based cat memecoin has generated nearly $3 million in Zcash rewards for its holders, benefiting from the sharp rally in both ZCAT and the privacy-focused cryptocurrency.

Anonymous Cat, or ZCAT, applies a 3% fee to every transfer. The majority of those fees are converted into Zcash (ZEC) and distributed to wallets holding at least $20 worth of the token, according to data published by the project.

The value of the rewards has jumped as ZEC has surged. Around 2,320 ZEC, worth approximately $2.8 million as of Monday morning in Asia, has been distributed through more than 470,000 payouts.

The reward system does not generate income independently. Instead, distributions are funded by ZCAT transaction activity. Users buying, selling or transferring the token generate the fees used to purchase ZEC. If trading volume falls, the size of future payouts could drop sharply.

Zcash has posted one of the crypto market’s biggest gains over the past year, rising more than 2,300%. ZEC crossed the $1,200 mark late Sunday as interest in privacy cryptocurrencies picked up again.

The network is designed to protect transaction details, allowing users to conceal information such as the sender, recipient and amount. Its latest rally has consequently fueled speculation that privacy-focused assets could once again become a major theme among crypto traders.

For investors who prefer traditional market exposure, Grayscale launched a spot Zcash ETF on NYSE Arca in late August. The fund provides exposure to ZEC without requiring investors to purchase and custody the cryptocurrency themselves.

ZCAT is paired with ZEC on StonkFun, a Solana launchpad that allows newly created tokens to trade against assets other than SOL and stablecoins.

The token has experienced a strong rally of its own. ZCAT was trading around 13 cents on Monday, giving it a market capitalization of roughly $124 million and about $22 million in 24-hour trading volume. It briefly climbed to nearly 19 cents during the weekend before dropping sharply in early Monday trading.

Cat Coins Fuel Memecoin Speculation

ZCAT’s performance comes amid growing interest in cat-themed memecoins, which have gained traction despite lacking traditional fundamental drivers.

Cash Cat is one example of how quickly these tokens can gain popularity around emerging blockchain networks. The memecoin surged after Robinhood Chain launched in July and attracted attention partly because Cash Cat was an early name associated with Robinhood before the company adopted its current brand.

One trader reportedly transformed roughly $800 into more than $1 million during Cash Cat’s first week. Memecoin activity also quickly became a major source of usage on Robinhood Chain, despite the network being built primarily for tokenized stocks.

The trend has since expanded. Memecoin applications now account for a significant portion of activity on Robinhood Chain, while Pons, a token-launch platform, recently recorded more than 22,000 newly created tokens in a single day and generated millions of dollars in user fees.

For ZCAT investors, the attraction comes with substantial speculation. The token’s ZEC reward system depends on continued trading activity and liquidity.

As a result, buying ZCAT is ultimately a bet that the cat-themed memecoin can maintain enough attention and market activity to keep its Zcash distributions flowing.