The anonymous cryptocurrency Zcash (ZEC), which had been somewhat overlooked by investors in recent years, is making a comeback. What are the reasons behind this, and will it last?
Zcash (ZEC) Has Been Surging Since Early Fall
The price of Zcash has skyrocketed in recent weeks. ZEC, which had been largely overlooked in recent years, is now experiencing a resurgence in interest. Over the past month, it has risen 354%:
The price of ZEC has skyrocketed since the start of fall
The rally appears to be gaining momentum, as ZEC surged 19% yesterday alone. This surge has propelled it back into the top 20 cryptocurrencies by market capitalization, at $619.
An “old-timer” returning to the spotlight?
Launched in 2016, Zcash is a privacy-focused cryptocurrency that uses zk-SNARKs technology. Unlike a network such as Monero (XMR), users can choose between a public transaction and a private transaction.
So how do we explain this return to the spotlight? Several developments appear to have led to this rise in ZEC’s price. One example is the growing adoption of Zashi Wallet, the privacy-focused wallet developed by the Zcash team.
The Taychon project also played a role. This series of major updates for Zcash notably improved synchronization speeds and hidden transactions. The protocol has become more modular, which has also helped advance the Zashi Wallet.
Will the ZEC price continue its surge?
Result: ZEC trading volume has surged (nearly $2 billion over the last 24 hours), and the cryptocurrency’s price has skyrocketed (+1,282% over the last 12 months).
ZEC is still far from its 2016 record high, when it neared $3,200. But this new momentum is undeniable and, at this stage, appears to be driven by a shift in narrative and evolving fundamentals. While caution is warranted, Zcash is certainly an asset to watch between now and the end of the year.
