The world of cryptocurrencies can be confusing at times, with several tokens making price movements frequently over the course of one working day. Hence, it is not at all surprising that some projects tend to get resurrected and grow in volume after an extended period of stagnation. The reasons behind this phenomenon can be attributed mostly to positive sentiment regarding the particular token, which is mostly caused by the positive industry news. One such instance was recorded recently, as Zcash (ZEC) started to perform well due to a variety of factors.
A little About Zcash
Introduced in 28th October 2016, Zcash was the product of the Zerocoin Electric Coin Company and aimed at the extensive use of cryptography to provide enhanced privacy to its users. The Zerocoin protocol was thus introduced to provide a superior degree of privacy to the token, compared to the likes of other privacy-based coins like Monero. As of 15/05/2018, Zcash has amassed a market cap of $1,411,758,583 USD with a total circulating supply of 3,919,831 ZEC tokens.
The Reasons for Zcash’s Dramatic Rise
Zcash along with several other cryptocurrencies did not have an encouraging performance over the last few months, with Zcash’s value dropping significantly after the January 08th, where it recorded a high of $780.84 USD. ZCash continued to perform poorly, dropping to a disastrous high of just $180.77 USD on April 11th. Currently, though, the situation has improved dramatically, with the recent gains propelling its value to $357.43 USD at the moment. Some major news events are behind this massive price surge, discussed in brief below.
- Integration By Circle: Zcash’s fortunes started to take a turn for the good on April 30th, when it was announced that Circle has added ZCash. The investment app launched back in March has already attracted a strong user-base, and would allow Zcash to attract even more users for widespread adoption.
- Alliance with StawkWare: On 11th May, the news regarding the alliance with Starkware industries definitely generated a high degree of positive sentiment around the coin. StawkWare Industries is a reputed developer behind the creation of Starks, a cryptographic proof system. Thus, the news of this partnership has a positive effect on Zcash’s reputation, as the team plans for a better and more secure platform for their users.
- Listing on Gemini Exchange: The Winklevoss Twins owned Gemini exchange, which has been in the spotlight for quite some time now, decided to add Zcash, becoming the project’s first licensed Cryptocurrency exchange. The addition to the Gemini exchange is expected to bring even more success to the Zcash project, as more users start to embrace its high degree of anonymity. Indeed the effects were noticeable shortly after the news broke out, with Zcash’s value rising from $263.03 (High) on May 13th to $349.56(high) the next day. The daily trading volume also increased dramatically, increasing from $28,585,200 to $293,688,000 overnight.
The path to success seems clear for Zcash, as evidenced by the 55% growth it experienced on May 14th. This comes as a relief for many investors after experiencing an initial 20% decline earlier. Zcash has since reached the 0.041 BTC mark, with demand for the project expected to rise in the coming days. It is to be noted that in spite of the price surge; Zcash’s relative strength index still appears neutral at 66. With big exchanges like Bitfinex and Binance already working with Zcash, the bearish sentiment in the market seems not powerful enough to negatively affect its value. With more than 90 operational markets spread across several exchanges worldwide, Zcash is not showing any signs of slowing down and is expected to be a valuable investment option in the near future.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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