Key Takeaways

Zcash (ZEC) has fallen over 35% from a recent high of nearly $750.
Many experts see the decline as a healthy correction, with optimism for a future bull run.
The amount of ZEC held in the Shielded Pool has surged, indicating increased demand for privacy.
Analysts expect ZEC could reach $10,000 in the future, with necessary retracement phases along the way.
Growing privacy concerns are driving interest in ZEC and privacy-themed altcoins, potentially attracting institutional investments.

Key Takeaways

Zcash (ZEC) has fallen over 35% from a recent high of nearly $750.
Many experts see the decline as a healthy correction, with optimism for a future bull run.
The amount of ZEC held in the Shielded Pool has surged, indicating increased demand for privacy.
Analysts expect ZEC could reach $10,000 in the future, with necessary retracement phases along the way.
Growing privacy concerns are driving interest in ZEC and privacy-themed altcoins, potentially attracting institutional investments.

Zcash (ZEC) Experiences 35% Decline in November — Experts Remain Upbeat

Zcash (ZEC) is undergoing its most turbulent week of the year. After peaking at nearly $750, the cryptocurrency has since dropped by over 35%. Despite this sharp decline, many experts maintain a positive outlook for ZEC.

What factors contribute to their belief that this downturn won't impede a stronger bull run in the near future? Here are the essential insights.

Experts’ Optimism Surrounding Zcash

ZEC, primarily focused on privacy, is perceived as more than just a cryptocurrency. Many investors view it as an indicator of the increasing demand for security and confidentiality within the crypto realm.

Even as the price has plummeted, the number of ZEC locked in the Zcash Shielded Pool—the network’s fundamental privacy layer—has significantly increased. This surge indicates a growing interest in privacy-centric transactions.

Shielded Pools are specific features in Zcash that facilitate private and discreet transactions.

Historical data reveals that the volume of ZEC secured in the pool grew dramatically from about 2.6 million tokens at the end of March to over 4.1 million by early November, showcasing a nearly vertical growth trajectory in recent months.

“The shielded pool on Zcash is literally vertical. The privacy properties are improving in real-time. The transformation from speculation to enhanced privacy is one of the most remarkable trends I've observed in crypto,” stated Mert, CEO of Helius Labs.

A recent report from a16z Crypto, a prominent venture capital firm in the blockchain sector, underscored that concerns regarding privacy are becoming increasingly urgent as cryptocurrency adoption broadens among mainstream users.

The report emphasized several crucial factors:

Omid Malekan, a Columbia Business School professor and crypto specialist, echoed similar sentiments. He pointed out that while privacy has long been acknowledged as important, it has often been overlooked within the industry.

“Regarding friends coming home, I believe the rise of Zcash is something everyone in crypto should celebrate, regardless of individual financial stakes or what the future holds for the coin,” remarked Omid Malekan.

Arthur Hayes, co-founder of BitMEX, also encouraged ZEC holders to withdraw their assets from centralized exchanges and store them independently.

The shared optimism from these industry experts extends beyond short-term price fluctuations. Their influence could potentially sway retail investors, aiding in the recovery of ZEC.

Insights from Analysts on ZEC’s November Drop

Numerous analysts view ZEC’s recent price correction as a natural and healthy occurrence rather than a sign of weakness. Some experts even anticipate ZEC could reach values as high as $10,000 in the future, believing that such retracements are essential for equilibrating market sentiment and sustaining a robust bull market.

“Zcash reaching $10K, with normal and healthy retracement phases, seems plausible,” investor Yoshi noted.

Analyzing data from the Shielded Pool shows a minor dip in recent days, which is expected. Many bigger investors, referred to as "whales," are realizing profits exceeding 1,000%.

“This is a healthy movement; many whales are leveraging over a 1,000% increase in purchasing power, which is a natural inclination to realize some gains or diversify into other assets,” clarified analyst Vini Barbosa.

Moreover, ZEC’s comparatively lower inflation rate—similar to Bitcoin’s halving mechanism—coupled with rising privacy awareness, provides a solid foundation. Analysts are optimistic that these elements will position ZEC for long-term growth.

ZEC's positive narrative is also fostering enthusiasm among smaller privacy-oriented altcoins. Experts speculate that these privacy-focused altcoins may soon gain institutional interest and could even be incorporated into Digital Asset Trusts (DATs), serving as "Trojan horses" that could introduce new investment capital into the market.