Zcash Shielded Supply Hits Record 5.1 Million Amid Market Decline
Autor: Mining Provider Editorial Staff
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Kategorie: News
Zusammenfassung: Zcash's shielded supply has hit a record 5.1 million ZEC amid a declining market, reflecting strong demand for privacy features and significant net buying pressure from traders. Additionally, the network's hashrate reached an all-time high of 16.3 GH/s, indicating increased miner confidence ahead of the upcoming halving in November 2024.
Zcash: Shielded Supply Reaches Record High of 5.1 Million Amid Weak Market
According to BeInCrypto, Zcash (ZEC) has achieved a significant milestone with its shielded supply reaching a record high of 5.1 million ZEC. This increase comes at a time when the broader cryptocurrency market is experiencing a downturn, with major tokens like Bitcoin, Ethereum, and Solana facing declines. In the last 24 hours, ZEC has surged over 13% to approximately $618, making it one of the few large tokens showing positive growth.
"The increase in shielded supply is significant as shielding is the main use case of Zcash," noted the report.
The rise in shielded Zcash holdings is primarily attributed to the latest pool, Orchard, which alone accounts for around 4.5 million ZEC. In contrast, older pools like Sapling and Sprout hold significantly less, with approximately 592,000 ZEC and 25,000 ZEC, respectively. This trend aligns with the thesis from Multicoin Capital, which has built a substantial position in ZEC, citing privacy as a safeguard against increasing visibility of assets.
Key Takeaway: Zcash's shielded supply has reached a record 5.1 million ZEC, indicating strong demand for privacy features amidst a declining market.
Network Hashrate Hits All-Time High
The Zcash network has also seen a remarkable increase in its hashrate, which reached an all-time high of 16.3 GH/s at the end of May. This surpasses the previous highs of approximately 11 GH/s in 2022 and 10 GH/s in 2024. A higher hashrate enhances network security and indicates that miners are optimistic about the profitability of Zcash mining.
As the upcoming halving in November 2024 approaches, which will reduce the issuance of new ZEC, miners are ramping up their operations rather than scaling back. This is a strategic move as the focus on privacy in the cryptocurrency space intensifies.
Key Takeaway: The Zcash network has achieved a hashrate of 16.3 GH/s, reflecting increased miner confidence and security ahead of the upcoming halving.
Market Dynamics and Trading Pressure
On the trading front, ZEC is one of the few major assets experiencing net buying pressure, with approximately $33.73 million in net purchases on the perpetual exchange Hyperliquid. In stark contrast, Bitcoin, Ethereum, and Solana have all recorded net sales, with Bitcoin alone seeing over $506 million in net selling.
The open interest for ZEC stands at around $368 million, distributed among approximately 7,190 traders, which is substantial for a token of its size. The annualized funding rate for ZEC is approximately 40.77%, nearly four times higher than that of Bitcoin and Ethereum, which is at 10.95%. This high funding rate indicates that traders are paying a premium to maintain their long positions, suggesting a bullish sentiment.
Key Takeaway: ZEC is experiencing significant net buying pressure and a high funding rate, indicating strong trader confidence despite broader market challenges.
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