ZEC (Zcash) increased by 16.47% in the past 24 hours

Gate News Bot Message, December 12th, according to CoinMarketCap market data, as of press time, ZEC (Zcash) is currently trading at $458.96, up 16.47% in the past 24 hours, with a high of $468.78 and a low of $329.74. The 24-hour trading volume reached $1.178 billion. The current market capitalization is approximately $7.542 billion, a increase of $1.067 billion from yesterday.

Zcash is the first cryptocurrency to implement private peer-to-peer payments using zero-knowledge encryption technology. As a form of encrypted electronic cash, ZEC protects user privacy through end-to-end encryption, while adopting a decentralized protocol to ensure fund autonomy. ZEC transactions are faster than Bitcoin, with transaction fees usually only a few cents. Users can manage assets in ecosystem wallets such as Zashi Wallet and Edge Wallet, and trade on major global exchanges like Gate.

Important recent news about ZEC:

1️⃣ Dynamic fee model upgrade becomes core technology-driven

The dynamic fee market proposal proposed by Shielded Labs has continued to drive ZEC price increases over the past seven days. The proposal suggests abandoning the long-standing fixed fee mechanism (currently 1,000 zatoshi) in favor of a dynamic structure based on the median of transaction fees over the last 50 blocks. The new mechanism will calculate fees based on actual transaction activity, simulating stable load through synthetic comparable objects, making fees more predictable and more effective at resisting spam attacks. This technical upgrade aims to improve network efficiency, reduce congestion, and protect user privacy and cost experience. It avoids the complexity of mechanisms like EIP-1559 while maintaining Zcash’s privacy features, with phased implementation expected. Improvements in network performance are expected to provide strong technical support for ZEC’s mid-term development and serve as a key driver of this rebound.

2️⃣ Institutional investors continue to strengthen support for price foundation

Increased institutional adoption provides strong funding support for ZEC. The fund under the Winklevoss brothers has purchased a total of 200,000 ZEC since November last year, worth over $80 million, aiming to ultimately hold 5% of circulating supply. Reliance Global has also shifted its entire digital asset portfolio into ZEC investments. Cypherpunk Technologies has established a $100 million ZEC treasury and holds over 200,000 ZEC. Additionally, traders on derivatives platforms like HyperLiquid have continued to increase long positions, with several large institutional investors increasing margin and leverage on ZEC long positions over the past week. These institutional layouts indicate professional investors’ optimism about ZEC’s mid-term prospects, forming a solid price support foundation.

3️⃣ Regulatory policy expectations heat up and privacy application expansion

The U.S. Securities and Exchange Commission will hold a roundtable on December 15th regarding cryptocurrencies, financial monitoring, and privacy, with Zooko Wilcox, founder of Zcash, delivering a keynote speech. The meeting aims to assess SEC’s regulatory stance on privacy technologies during rule-making. If consensus is reached that zero-knowledge proofs can meet compliance obligations, this flexibility may be incorporated into digital asset regulatory frameworks. Grayscale has submitted an application to regulators to convert its Zcash trust into a spot ETF tracking the CoinDesk price index. If approved, it will be a significant breakthrough in the privacy coin space. Meanwhile, Zcash co-founder Zooko Wilcox serves as an advisor to the U.S. anonymous phone service provider Phreeli, which uses zero-knowledge proofs for billing payment verification, demonstrating the expansion of privacy tech in practical applications. The policy focus on privacy coins combined with ecological application expansion enhances investor expectations for ZEC’s long-term outlook.

4️⃣ Short-term upward momentum and technical confirmation

ZEC has steadily rebounded over the past seven days, rising from about $385 on December 5th to the current $458.96, a gain of over 19%. Technical indicators show that the RSI recently broke through the neutral 50 zone, indicating increased buying strength. The short-term structure remains bullish, with multiple key support levels successfully held. However, attention should be paid to the -0.47 correlation coefficient with Bitcoin, as this negative correlation may restrict ZEC’s upward potential when Bitcoin experiences a strong recovery. In the short term, sustained buying is needed to ensure ZEC continues its upward trend.

This message is not investment advice; please be aware of market volatility risks.