The ZEC market is currently experiencing a period of high volatility following its recent surge to $1,300. Despite this, the increasing mining profitability of Zcash is adding another bullish dimension to the asset. While Zcash miner rewards are significantly lower than Bitcoin’s, the mining economics paint a different picture.
Zcash Mining Profitability Is Stealing Attention
According to Grayscale Research data, Zcash mining rewards are approximately double per mining rig and four times higher per megawatt hour (MWh) compared to Bitcoin. This significant gap has led to a more than 2.5x increase in total Zcash mining activity this year.
While Zcash may not surpass Bitcoin in terms of mining rewards, the increasing attractiveness of the network to miners is evident.
ZEC Demand Has Clearly Picked Up
The technical chart for ZEC also indicates a rise in demand. Investors have shown a growing interest in the asset, leading to a significant price surge.
The increased demand has propelled ZEC to $1,300. Now, the market is faced with the question of whether buyers can sustain this momentum or if the recent rally is losing steam.
ZEC Price Faces $1,500 Or $900 Next
The current phase for ZEC price is marked by volatility. If the bullish trend continues, the next significant target could be the $1,500 level.
However, there is no certainty that buyers will reach this target. Increased selling pressure could lead to a correction towards $900 or potentially lower.
With rising mining profitability and growing investor interest supporting the bullish scenario, the current volatility also presents downside risks. The upcoming developments will determine whether ZEC price sustains its rally or retraces some of its recent gains.
