The reasons behind the recent surge in the value of the privacy-focused altcoin Zcash (ZEC) are drawing attention once again. Today, ZEC has risen sharply, with its price surging by 33% in the last 24 hours and an impressive 433% increase over the past month. These figures are particularly unusual for an altcoin with a billion-dollar market capitalization.
Zcash, which is listed on major centralized exchanges including Binance and Coinbase, has a history that dates back to the early days of the cryptocurrency market. Launched in 2016, ZEC is based on Bitcoin’s codebase. At the time of its launch, its limited supply contributed to an all-time high price of around $3,000.
Following Ethereum’s transition to the Proof of Stake consensus mechanism, Zcash has emerged as one of the most important Proof of Work altcoins, alongside Bitcoin. Interestingly, despite its early success, ZEC remained below $100 for years and hit an all-time low of $15 in July 2024.
This drastic decline even led Binance, the world’s largest cryptocurrency exchange, to initiate a delisting vote for ZEC in April 2024. Fortunately for Zcash holders, the altcoin was saved from delisting by winning enough votes to remain listed.
However, regulatory pressures remain, especially in Europe, where Binance and other exchanges face challenges due to the difficulty of tracing privacy-centric cryptocurrencies like ZEC. Notably, Monero (XMR), a similar privacy token, has not seen a similar price surge and has been delisted from many major exchanges.
So, what is fueling Zcash’s recent rally?
Several factors appear to be contributing to this renewed interest:
– **Growing Demand for Privacy Infrastructure:** There has been a resurgence in demand for privacy-focused technologies within the cryptocurrency space.
– **Technical Updates by Electric Coin Company:** The company behind ZEC has rolled out numerous technical improvements recently, enhancing the network’s capabilities.
– **ZEC as a Bitcoin Alternative:** Analysts at Galaxy Digital point out that, due to its Bitcoin codebase, some users are beginning to view ZEC as an alternative to BTC.
Zcash’s ability to facilitate transactions using zero-knowledge proofs enables users to “hedge” their transactions, offering privacy benefits. This feature is attracting interest from individuals concerned about Bitcoin’s increasing centralization, particularly with growing Wall Street adoption, as well as those wary of on-chain surveillance.
*This article is for informational purposes only and should not be considered investment advice.*
https://bitcoinethereumnews.com/tech/what-is-zcash-zec-and-why-has-it-rallied-so-much-heres-everything-you-need-to-know/
