Zcash price recovers $400, what is the driving factor now?

Source: CritpoTendencia Original Title: The price of Zcash recovers $400, what is the current driving factor? Original Link: After long days of correction and drama for investors, the price of Zcash (ZEC) seems to be regaining an upward trend. According to available charts, the currency has experienced a +11.53% performance in 24 hours, while the weekly chart shows a +29.08%. This has allowed its price to emerge from the local low of $381 up to the $429 at the time of writing this note.

This recovery sparks a revival of optimism among investors in this currency, which was the protagonist of October-November by challenging the downward trend. However, in recent days, the token experienced a strong profit-taking movement by investors, leading to a sharp collapse in its price.

Following the recent rebound, market participants are wondering how high the currency could go and how sustainable this new streak is. For this, it is essential to understand the catalyst behind the momentum. First of all, the proposal from the team behind the network stands out, which is a dynamic fee model designed to protect users.

This development is complemented by the fact that the currency can now be widely traded on some traditional exchanges. Recently, some global trading platforms re-listed ZEC after several years of exclusion due to fears of repercussions from U.S. regulators.

This last point could be key in triggering quick reactions in the price of Zcash. Presence on exchanges significantly shortens the adoption process among investors.

Some elements to consider for the price of Zcash

Although much of the ZEC price momentum has speculative components, there is also a strong organic presence. This is reflected in the fact that the currency’s positive performance extends over a long period. For example, on a year-over-year basis, the token has increased its price by over +550%.

This increase in the adoption of privacy coins is closely related to regulations. Many traditional crypto actors and whales do not feel secure in coins from transparent networks. This has motivated them to transfer their funds into coins like Zcash, Dash, and XMR, whose features allow privacy protection.

Basically, the more robust the privacy of these tokens, the more attention they could attract from large wallets. By inference, it can be said that these whales fear regulations becoming an open window for state and banking surveillance.

Against this backdrop, the Zcash team announced the aforementioned fee model with the goal of protecting user privacy. This was positively received by the market, at least for now, as reflected in the new rise in Zcash’s price.

The proposal aims to bring order to the problematic fee system of this blockchain. It will allow it to catch up with strong demand and current market conditions. Therefore, the abandonment of the static fee model and the adoption of a dynamic structure are recommended.

Among the advantages, this would significantly reduce spam transactions that considerably slow down the network.