Zcash Price Soars: Here’s Why Traders Are Paying Attention
Zcash, a privacy-focused Bitcoin substitute, gained over 33% in value within a few hours on Friday. Short position liquidations totaling more than $51 million were brought on by this dramatic surge. The token increased from $536 just one day before to about $735 on Friday afternoon. Since then, it has settled at $561, which is still 29.63% higher than it was a week ago. Zcash-related positions were the third most liquidated in cryptocurrency on Friday as a result of the quick price movement. CoinGlass data indicates that Zcash positions, including long bets, totaling more than $59 million, were liquidated. Conversely, $146 million worth of ETH and $150 million worth of Bitcoin were liquidated.
Zcash Climbs Fastest Since 2018
Zcash, a relatively unknown cryptocurrency until recently, has been experiencing almost constant growth for more than a month. After hovering at $40 for more than three years, the token started to rise in early October and hasn’t stopped since. Its price has increased tenfold in just five weeks. The top price on Friday was the highest since January 2018, according to CoinGecko data. Even so, Zcash’s current price is still 82.4% less than its 2016 peak of $3,191.
Investors Turn to Zcash as Bitcoin Privacy Concerns Mount
Zcash, which was developed in 2016 by forking the Bitcoin core, uses a zero-knowledge proofing scheme to promote anonymous transactions. With a current valuation of roughly $9 billion, it is the biggest privacy-focused cryptocurrency token by market capitalization. In recent weeks, analysts have suggested that growing worries about Bitcoin’s decentralization and privacy are a major factor in Zcash’s recent surge. This occurs during a period of unparalleled political and business support for the leading cryptocurrency in the world.
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