On March 31st, the leading privacy coin Zcash ($ZEC), has regained upward momentum after a modest decline last week, surging more than 10% on the daily chart.
According to coin market capZcash ($ZEC) price is currently trading around $248.77, up over 10% in the past 24 hours. There has been a similar jump in market capitalization, which now stands at about $4.13 billion. Daily trading volume increased by 62% and now stands at approximately $514.4 million.
Why Zcash price is skyrocketing today
On Wednesday, the cryptocurrency soared past a weekly high of $255. However, it quickly faced a correction at this major resistance level, dropping to around $250 within a few hours.
The buzz on the internet is telling us that $ZEC There was a sharp price increase, increasing by more than 10%. The main reason for the rise in cryptocurrencies is speculation surrounding ETFs, which are attracting attention from investors.
There are many factors that support Zcash’s upward trajectory. According to Analyze the coinZcash’s open interest, which is a measure of total outstanding derivative contracts, increased significantly. This shows that new money is flowing into the market.
On Binance, Zcash open interest surged to $139 million along with trading volume, indicating that buyers are in control and creating buying pressure.
Apart from this, $ZEC currently outperforms by more than 9% on a relative basis. This shows that the current rally is not solely dependent on temporary market trends, but is highly dependent on the strength of Zcash.
While the current bullish momentum continues, $ZEC While strong, recent inflows have also been accompanied by increased volatility. Much of the buying activity is concentrated in the derivatives market, which can be amplified both upward and downward in price through leveraged trading.
A pullback from $247 is also possible as buyers may start taking profits. If something like this happens, $ZEC The price may face a correction and return to the pre-rise zone around $231. Similarly, if the cryptocurrency manages to sustain its gains, it could create further upside potential and head toward its next price target of $280. However, the price of Bitcoin, the main cryptocurrency, is still hovering around $66,000.
Zcash ($ZEC) Ecosystems grow with institutional support and new developments
Since the beginning of this year, the Zcash ecosystem has experienced rapid expansion and growth due to the increasing demand for privacy-based cryptocurrencies. The establishment of the Zcash Open Development Lab (ZODL) is one of the key developments. ZODL secures $25 million We raised seed funding from top investors including Paradigm, a16z crypto, and Coinbase Ventures.
This new funding will likely be used behind protocol development, interoperability improvements, and the evolution of privacy tools such as the Zodl self-custodial wallet.
Additionally, sealed pool activity has already spiked by more than 400%. Shielded transactions are used to hide the sender and receiver using zk-SNARKs. This feature helped facilitate network activity.
Recently official report“Although Zcash has been around for nearly a decade, it may be entering a new chapter. The use of its shielding technology is increasing, and new capital is entering the ecosystem to support wallet development and Zcash mining,” said Grayscale analyst Michael Chao.
