Zcash Price Drops by 25%: Why Miners and Privacy Advocates Are All In
Zcash (ZEC) continues to face significant pressure, with the cryptocurrency designed for privacy experiencing a decline of over 25% this month amid a generally weak market. Despite this downturn, some on-chain and mining data indicate a structural confidence within the community.
Initially, ZEC was one of the few coins that resisted the broader downward trend in October 2025, with data from CryptoRank showing a remarkable increase of over 440% during that month. However, the months of November and December brought more volatility, although ZEC managed to close both months with slight gains. Unfortunately, the year 2026 has not been favorable for the privacy-focused cryptocurrency, with a significant drop of over 41% in January.
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"This means that real people are sending protected transactions every day, even if they are not making a profit," an analyst noted.
As of the writing of this article, the ZEC price stands at $227.22, reflecting a decrease of 4.29% in the last 24 hours. Despite the ongoing price weakness, on-chain data shows early signs of positivity, with the amount of ZEC in protected pools increasing after a slight decline in January. Currently, more than five million ZEC are held in protected addresses, representing approximately 30% of the total supply.
Moreover, the mining difficulty for Zcash reached a new high at the beginning of February. This increase in difficulty, which correlates with the total computational power, indicates more competition among miners and a stronger security profile for the community. An increase in difficulty suggests that more computational power has entered the network, potentially from new participants, larger industrial setups, or improved technology. While this enhances network security, it also means that the reward per computational power decreases.
The rise in mining difficulty, despite a weak market, suggests that mining remains profitable for some miners. This could be attributed to low electricity costs, efficient operations, strategic planning, or expectations of future price increases. Overall, the data indicates that participation and security within the network are on the rise.
Key Takeaways:
- Zcash price has dropped over 25% this month.
- Current ZEC price is $227.22, down 4.29% in the last 24 hours.
- More than five million ZEC are held in protected addresses, indicating ongoing community activity.
- Mining difficulty has reached a new high, suggesting increased competition and network security.
Source: Yahoo! Finanzen Deutschland
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