Zcash (ZEC) was once a forgotten privacy coin, but it has made a remarkable comeback. It became one of the hottest assets investors were looking at during October’s frightening market conditions.
The altcoin also achieved a major milestone with its sealed pool exceeding 4.5 million ZEC. What does this mean and how can it affect pricing?
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Evidence that interest in Zcash goes beyond price
Zcash (ZEC) recently achieved an important milestone. According to CoinMetrics data, its shielded pool exceeded 4.5 million ZEC.
Within just three weeks, approximately 1 million ZECs were moved into a shielded pool and the price of ZEC soared five times. However, users continued to transfer their coins to shielded wallets rather than selling them for profit.
Zcash shielding is the process of transferring funds from a transparent address (t-address) to a shielded address (z-address or u-address). This hides transaction details such as sender, recipient, amount, etc.
This technology relies on zk-SNARKs to ensure privacy without compromising the transparency of the entire blockchain. The increasing number of users choosing to protect their coins reflects strong confidence in both the project and its privacy technology.
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“Signal: Watch the ZCash shielded pool compared to the ZEC price. Those who shield ZEC will not sell.” — Josh Swihart, CEO of Electric Coin Co.
What does this mean for the price of ZEC?
Expansion of the shielded pool suggests a reduction in circulating supply. Shielded coins are typically held for long periods of time rather than being traded frequently.
According to Coingecko data, the total circulating supply of ZEC is 16.34 million pieces, with 4.5 million pieces currently stored in the sealed pool. This represents approximately 27.5% of the circulating supply, and this number continues to increase. This dynamic puts upward pressure on prices, especially if demand continues to increase.
Victor, a developer within the Zcash ecosystem, explained that this phenomenon is a sign of real adoption rather than speculation.
“Normal operation of cryptocurrencies: pump → exchange → dump.
Zcash works: Pump → Shield → Zodol.
This is not a guess. That is the introduction of privacy technology. ” — said Victor.
A recent BeInCrypto report noted that some analysts even predict that ZEC could soar above $60,000.
Meanwhile, on the Myriad prediction platform, investors expect ZEC to reach $300 by November, with a probability of 69%.
