ZEC Price Slides 25%: Why Are Miners and Privacy Users Doubling Down?
Zcash (ZEC) stays beneath stress, with the privacy-focused cryptocurrency dropping greater than 25% this month amid broader market weak spot.
However, beneath the floor, some on-chain and mining indicators counsel structural confidence within the community.
Zcash Price Falls in Risk-Off Market as On-Chain Data Shows Growing Network Participation
ZEC was one of many few property that originally defied the broader sector-wide downturn in October 2025. According to CryptoRank data, the token surged greater than 440% in the course of the month.
Although November and December introduced heightened volatility, ZEC nonetheless closed each months within the inexperienced with modest features. However, 2026 has not been as favorable for the privacy-focused cryptocurrency.
A broader risk-off sentiment throughout monetary markets, mixed with concerns surrounding the Electric Coin Company (ECC) staff’s cut up from Bootstrap, weighed on the asset. ZEC declined greater than 41% in January.
The coin has prolonged its downward trajectory into this month. At press time, ZEC was buying and selling at $227.22, down 4.29% over the earlier 24 hours.
Despite the sustained value weak spot, on-chain information suggests rising optimistic alerts. After a modest dip in early January, the quantity of ZEC held in shielded swimming pools started rising once more.
At press time, greater than 5 million ZEC have been held in shielded addresses, accounting for roughly 30% of the coin’s circulating provide.
“That means actual individuals are sending shielded tx each single day, even when there’s zero revenue in it,” an analyst wrote.
The regular improve in shielded provide suggests sustained consumer engagement and could replicate continued confidence in Zcash’s privateness infrastructure regardless of short-term market stress.
In addition, Zcash mining problem reached an all-time high in early February. Because problem adjusts in response to mixture computational energy, the transfer alerts heightened competitors amongst miners and a stronger safety profile for the community.
An improve in problem signifies that extra hash energy has joined the community, whether or not by way of new individuals, expanded industrial operations, or extra environment friendly {hardware} deployment. While this strengthens community safety, it additionally raises competitors, decreasing the anticipated block reward per unit of computing energy.
The rise in problem regardless of broader market weak spot means that mining economics stay viable for not less than a section of operators.
This could replicate aggressive electrical energy prices, operational effectivity, strategic positioning, or expectations of future value appreciation. Overall, the info confirms rising community participation and security.
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