What is the ZEC currency and how did it experience this significant rise?
What is Zcash?
Zcash is a digital cryptocurrency launched in 2016, derived from protocols similar to Bitcoin but added an optional feature for shielded transactions using a fundamental technology called zk-SNARKs — a zero-knowledge proof that allows verification of transactions without revealing the sender, receiver, or amount.
The maximum supply of ZEC is 21 million units, similar to Bitcoin.
Users can conduct transparent transactions (like Bitcoin) or obfuscated transactions, giving them a privacy option.
The project's goal is to provide "encrypted electronic cash" that gives users control over privacy when sending money.
Why has the price of ZEC risen significantly?
Several factors explain this rise — some are technical, while others relate to demand or market trends. Here are the main ones:
1. Increased demand for privacy-focused coins
There is renewed interest in cryptocurrencies that offer greater privacy, especially amid increasing regulatory discussions and the need for some users for privacy-preserving alternatives.
Some reports indicate that shielded transactions for Zcash have increased, reducing the tradable supply and increasing buying pressure.
2. Technical breakout of important resistance levels and technical interest
For example, the long-term resistance line for ZEC was broken, which sparked the interest of technical traders.
According to technical analysis, momentum could continue towards higher levels if the price stabilizes above important support (e.g., ~245 USD).
3. Changes in supply / relative decline in circulating distribution
Some sources indicate that a large proportion of ZEC has become obfuscated or shielded, reducing immediate commercial supply, which creates higher buying pressure.
4. Positive market sentiment and comparison with weak performance of competitors
Although the overall cryptocurrency market may be weak or volatile, ZEC has been able to outperform, attracting attention as a relative opportunity.
5. Media coverage and promotional analyses
Like articles targeting investors describing ZEC as having "strong upward potential" — which may increase liquidity flow to it.
Important notes and warnings
Despite the significant rise, some analysts warn that Zcash is facing a potential correction as it has entered a peak phase, and technically it may need to consolidate before continuing to rise.
