ZCash (ZEC) Surpasses $500: Here’s What You Need to Know

The price of ZCash (ZEC) has recently crossed the significant $500 mark, signaling a positive outlook for this privacy-focused cryptocurrency. This price increase comes amid heightened whale activity and a surge in derivatives trading among crypto investors.

Key Takeaways

ZEC's price has exceeded $500, achieving over a 20% increase in one week.
This surge occurs even as the broader cryptocurrency market remains in a downtrend.
Whale accumulation has significantly increased, bringing top addresses to hold 66% of ZEC's total supply.
On-chain analytics suggest investors are moving ZEC off-exchanges for long-term holding.
BitMEX co-founder Arthur Hayes predicts ZEC could reach $1,000, while Zcash’s co-founder attributes the rally to increasing demand for privacy in crypto.

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What’s Behind ZCash (ZEC) Rallying Above $500?

Recent data from CoinMarketCap reveals that ZCash (ZEC) has risen above $500 again, showing a notable increase of more than 20% this past week. Surprisingly, this price movement occurs despite the ongoing downtrend in the overall crypto market, where Bitcoin is hovering just below the crucial $90,000 threshold. The rise of ZEC above $500 is closely linked to a substantial uptick in whale accumulation.

According to Nansen’s analytics, ZEC whale holdings increased by 47%, with the top 100 addresses now accounting for 66% of Zcash’s overall supply. This accumulation has likely induced a supply shock, effectively pushing the price of ZCash higher. Additionally, there has been a significant 55.36% decline in the amount of ZEC held on exchanges, further indicating a trend of investors opting to hold their assets long-term.

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Source: Chart from Nansen

On-chain data from analytics platform Lookonchain has also pointed out the growing trend of accumulation by whales. In a recent post, it highlighted that two new wallets collectively withdrew 26,241 ZEC (valued at approximately $13.5 million) from Binance. Another whale also took out 7,714 ZEC (around $4.12 million) from Kraken. Previously, Lookonchain noted a withdrawal of 30,000 ZEC (worth about $13.25 million) from Binance just a week ago.

The derivatives market has also played a role in elevating ZCash's price above $500. Data from CoinGlass indicates an increase in open interest for ZEC, suggesting that traders are expanding their positions. Currently, many of these traders hold long positions, as indicated by a long/short ratio surpassing 1.

This recovery marks a significant turnaround for ZCash, which had dipped to as low as $310 earlier this month. ZEC is now recognized as the top performer among major cryptocurrencies, boasting an impressive year-to-date (YTD) increase of approximately 800%.

Next Price Target: $1,000

In a recent post on X, BitMEX co-founder Arthur Hayes expressed optimism, stating that ZCash (ZEC) could reach $1,000 following its recovery past the $500 mark. If realized, this represents an impressive potential increase of 100% from its current levels. Hayes has shown a positive outlook on ZEC for some time, even predicting that it could eventually skyrocket to $10,000.

Additionally, Zcash’s co-founder Eli Ben-Sasson has expressed confidence in ZEC's continued upward momentum, attributing it to the strength of the product, its scarcity, and the current regulatory environment favoring privacy. He emphasized that the demand for privacy is increasingly being recognized as critical within the crypto space, which may continue to drive up the price.

As of now, ZCash (ZEC) is trading around $536, reflecting a more than 3% increase in the last 24 hours, as reported by CoinMarketCap.

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ZEC trading at $523 on the 1D chart | Source: ZECUSDT on Tradingview.com