ZCash: What is Behind the Continuing Upward Drive?
The coin, recently listed on the Gemini exchange, finally managed to inspire hype, after being seen as a boring asset for a long time.
ZCash (ZEC) has always been an overlooked digital asset, as Monero (XMR) gained more prominence and publicity. But ZEC is also one of the leading coins, and the addition to the Gemini exchange boosted its price.
In the past two days, ZEC kept its momentum, despite the market downturn which temporarily wiped out some gains. ZEC has been one of the assets to return faster to a climbing trend.
ZEC added more than 10% overnight to $367.14, up a net 32.56% in the past week. Volumes in the past days are near the all-time highs, finally taking ZEC out of the world of niche exchanges, and into active trading as a prominent asset.
For ZEC, the increased dollar volumes are what drives the price, which has somewhat decoupled from Bitcoin. At the same time, ZEC has not yet seen an inflow of Tethers (USDT), meaning that the price growth, for now, rides on new investors buying in.
In the market for privacy coins, ZEC has received endorsements from several sides, including Vitalik Buterin, Saleem Rashid, and Monero’s Riccardo Spagni. Despite the barbs toward ZEC, the project has survived longer, and in a more organized fashion compared to other crypto coins.
However, the recent market downturn also shook some of the gains from ZEC, as the coin comes with a volatility warning.
Using ZEC offers the choice to transact both anonymously with peers, and with traceable transactions where this would be more convenient, such as sending to exchanges.
ZEC has been considered a “boring asset” for a long time. The coin’s blockchain is relatively young, yet to go through a halving. After the launch last October, the coin has a still small supply of around 4 million coins mined.
Therefore, some see ZEC appreciating to four-digit prices in the long term, if the upward market momentum continues. Yet as a high-priced asset, ZEC may not see as much hype as that related to low-priced coins, easily promising ten-fold appreciation.
Also, ZEC awaits the effect of ASIC mining, and the decision of the community to allow the network hashrate to grow, or to perform an ASIC-disabling fork.