Zcash News: Privacy Token Zcash Extends Rally with Halving Days Away

Zcash (ZEC) surged 20% in 24 hours, up 200% in 30 days. This rally is fueled by renewed privacy coin interest and its halving.

Zcash (ZEC) surged to $684 at press time. It jumped roughly 20% in the last 24 hours. This extends a blistering run, which is now up around 200% in the last 30 days. In the past year, ZEC has increased by over 1320%. This surge is driven by the renewed interest in privacy coins and the upcoming halving event.

Zcash Market Cap Reaches $13.4B As Demand for Privacy Increases

Its market capitalization ran at $13.4 billion. Daily trading volume dropped to $2.3 billion, some 29% lower than the previous day. This may indicate that some traders are switching off after heavy Zcash buying earlier in the week. According to CoinGlass data, open interest increased by 21% to $1.08 billion while futures volume dropped by 24% to $5.95 billion.

The rally was driven mostly by institutional interest in privacy-oriented assets. Endorsements by industry figures also helped. A halving of block rewards, which slowed the rate of inflation of the token, was another important factor.

Related Reading: Zcash News: Zcash Price Eyes $1,000 Target Despite Sharp Daily Decline | Live Bitcoin News

There are several factors that are fueling the Zcash rally. A halving event in November 2024 reduced the block rewards of Zcash by half. This made its annual inflation rate lower and its scarcity higher. This post halving scarcity is pointed out as a key driver for the price rally.

Growing institutional and investor interest is also a huge factor. Heightened demand for privacy-centric assets is partly because of increasing surveillance on the chain. This has attracted both retail and institutional investors to Zcash.

Influential endorsements have also added momentum to Zcash. High-profile individuals such as Arthur Hayes have openly endorsed Zcash. This has created a “fear of missing out” (FOMO) atmosphere among retail investors.

High Profile Endorsements and Institutional Interest

Technological advancements have also made Zcash’s foundation stronger. Ongoing improvements, such as the use of zk-SNARKs technology, have made it even more useful. Improved wallet support for shielded transactions is another improvement. The hybrid model, which supports both transparent and shielded addresses, has led to Zcash being more compatible with regulated exchanges.

The rally of Zcash has also led to a movement of privacy-focused tokens. Increased trading activity as reflected in Zcash futures data, revealing an all-time high in open interest, points to strong bullish sentiment.

This important rally has been boosted enormously by a high-profile endorsement. Arthur Hayes, one of the founders of BitMEX, made a very bullish prediction for the asset’s future. Specifically, Hayes said the potential value of ZEC was as much as $10,000. This optimistic statement soon helped in creating interest in retail investments. It created a definitive FOMO atmosphere.

Institutional interest is also on the rise. In recent weeks, the assets under management of Grayscale’s Zcash trust have more than doubled. They reached $151 million. This means that regulated funds are flowing back to privacy-oriented assets. This trend is particularly strong as data security is a major theme in global finance.

Zcash RSI Signals Extreme Overbought Zone, Risk of Correction

Despite the huge rally, some analysts are pointing out the dangers. The Relative Strength Index (RSI) showed that Zcash was in very extreme overbought territory. This would imply that there may be a price correction required for a sustainable upside.

Like all other privacy coins, Zcash is subject to possible regulatory scrutiny. There are external economic factors that could also affect its performance. The cryptocurrency market is known for its volatility, and Zcash’s future performance is not guaranteed. Investors ought to be cautious about these risks regardless of the bullish sentiment.

In conclusion, Zcash is in a powerful rally that is fuelled by the halving, institutional interest, and technological advancements. While a high-profile stamp of approval and increased demand for privacy assets paint an optimistic picture, with potential overbought situations and regulatory confounds making it cautionary.