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Zcash (ZEC), the privacy coin, has rallied by 59.2% in the last seven days. This huge spike in price outlook suggests crypto users are leaning heavily on privacy-focused projects, likely due to their resistance to quantum threats.
Zcash price surges from $239 to above $380
CoinMarketCap data shows that Zcash has been able to stay above the $360 price level for a larger part of this time frame. Notably, ZEC jumped from $239 to over $380 during this period as investors actively engaged with the coin in the crypto market.
As of this writing, Zcash changes hands at $375.14. The privacy coin had earlier soared from a low of $365.98 to a peak of $386.36. The 1.36% decline is a result of profit taking by some market participants in the last 24 hours.
The trading volume has dipped by 46.06% to $563.77 million because of the profit-taking moves. Additionally, the broader crypto market is seeing a capital rotation to Bitcoin. The weak altcoin performance and Bitcoin dominance are negatively affecting ZEC’s outlook.
It is worth mentioning that despite the decline in the last 24 hours, Zcash remains in a strong uptrend on a weekly basis. The asset’s chart shows that if ZEC is able to stay above the $360 support and volume recovers, the coin is likely to retest the $400 price level.
One of Zcash’s notable appeals to users is its privacy feature, which protects the public keys of a transaction. This implies that users have a sense of safety from quantum computer threats.
Although there are opinions that malicious actors can use quantum computers to "deanonymize" the private key of crypto assets in the future, privacy assets like ZEC have a better edge over non-privacy coins.
Trading volume surges amid renewed privacy coin demand
The appeal of privacy in the crypto sector saw Zcash’s volume spike by 108% in mid-March. The development suggests a significant increase in market participation and liquidity. It follows market participants’ renewed appetite for privacy coins.
This April, the volume surge has continued with ZEC. Traders on different exchanges like Binance, OKX and MEXC increased participation in accumulating the coin, leading to an over 70% uptick in volume.
Despite this volume uptick, investors are still anticipating better price growth and a resurgence of prices to the $650-$700 price zone. While ZEC’s privacy feature continues to attract new users, investors look forward to increased profit.
Dan Burgin
U.Today Editorial Team
