$ZEC Latest Analysis
1. Recent Correction but Strong Fundamentals
ZEC dropped ~35% from its November highs, triggering a sell-off.
Despite this pullback, there’s optimism: on-chain data shows an increase in ZEC locked in the Shielded Pool, signaling growing demand for private transactions.
2. Protocol Upgrades & Institutional Interest
The Electric Coin Company (ECC) has rolled out its Q4 2025 roadmap, focusing on upgrades like improved hardware wallet support (P2SH multisig) and better address management.
Institutional players are entering: Grayscale’s Zcash vehicle and other investors are backing ZEC, attracted by its optional privacy model.
Notably, regulator-friendly design is helping: Zcash lets users choose between transparent vs shielded transactions, which is appealing for compliance.
3. Decentralized Funding & Protocol Changes
Upcoming Network Upgrade 6.1 (NU6.1) aims to change how block rewards are distributed: part goes to community grants, part to a coinholder-controlled fund.
Bug fixes for shielded transactions and more robust client software are also on the way.
4. Supply Dynamics — More ZEC Getting Shielded
According to community reports, over 30% of ZEC’s supply is now shielded in the privacy pool.
This reduces the liquid supply and could create a supply squeeze, potentially supporting future price strength.
5. Risks to Consider
Some argue ZEC might be overbought right now. Technical setups (e.g., high RSI) point to possible short-term correction risk.
On the tech side, there is ongoing software migration: older node software (zcashd) is being deprecated in favor of new implementations, which may create friction for less technical users.
There are also security risks cited by some in the community. For example, one founder speculated about the possibility of a 51% attack on the network.
