Zcash (ZEC) has been performing exceptionally well in the cryptocurrency market. The privacy-centric altcoin saw a significant rally of over 16% in the last 24 hours, reaching a price of around $574 on Friday, November 14.
While Bitcoin (BTC) led a broader selloff in the altcoin industry, causing the total crypto market cap to drop by 2.3% in the past 24 hours to approximately $3.22 trillion, ZEC’s price continued to surge against the odds as traders expressed fear of further market downturns.
Why is Zcash Outperforming the Market?
High demand for privacy-centric tokens by whale investors
Institutional investors have shown a growing interest in ZEC recently. A16z highlighted the increasing demand for privacy-focused assets, which has boosted the overall interest in related altcoins.
Source: X
Cypherpunk recently acquired 203,775 ZEC, valued at around $50 million. Meanwhile, the Grayscale Zcash Trust now manages assets worth $200 million.
Rising demand for privacy-centric coins amid the criminalization of privacy rights
ZEC’s performance is also influenced by the increasing demand for privacy-focused cryptocurrencies, particularly in light of global crackdowns on privacy rights.
For example, the European Union’s new Anti-Money Laundering rules restrict cash transactions to €10,000 and require identity verification for crypto transactions exceeding €1,000, while also banning privacy coins and accounts.
What’s Next for Zcash?
Having outperformed many mid-cap altcoins in recent months, ZEC is poised to maintain its upward trend. With a market capitalization of approximately $12.1 billion, ZEC’s daily trading volume surged by 32% to reach $2.09 billion.
Technical analysis suggests that ZEC could soon reach $1000, but it must maintain a close above $690 to avoid a potential retracement to $223 in the near future.
