Allegations of PoW to PoS Transition Trigger Zcash Price Increase
The price of Zcash (ZEC) has been moving forward from where it stopped last week, hitting a new yearly high on Monday before its most recent decline. The price of the privacy coin reached $45.45, as stated. At this price, ZEC has reached both its highest point since March 2023 and its highest point this year. Zcash is one of the best-performing altcoins in early August after rising by around 45% over the previous 30 days.
BeInCrypto claims that this increase isn’t just the result of market interest or buying pressure. The conjecture surrounding Zcash’s potential switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is a major contributing element to the surge. The project’s creator, Zooko Wilcox, made a hint about switching to PoS on August 10. According to Wilcox, the recent rise is starting to revert the negative price pressure that has been brought about by the issuance of new ZEC through PoW over the years.
Zcash (ZEC) Supply Reaches 157,000: Can PoS Transition Ease Price Pressure?
In a Medium statement, Wilcox expressed his opinion that the switch to PoS, which tries to decrease the generation of new coins, will lessen the downward pressure on the ZEC price.
It will allow people to stake their ZEC, thus increasing demand for ZEC. It will also reduce the supply of ZEC by locking up staked ZEC.
Wilcox
Data from Messari indicates that Zcash’s fresh issue has increased to 157,000 coins as of this writing, confirming the founder’s concern about rising supply. There was a noticeable spike in the number of coins in circulation on July 1 when this figure was less than 70,000.
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