ZEC Price Slides 25%: Why Are Miners and Privacy Users Doubling Down?

Zcash (ZEC) remains nether pressure, with the privacy-focused cryptocurrency dropping much than 25% this period amid broader marketplace weakness.

However, beneath the surface, immoderate on-chain and mining indicators suggest structural assurance successful the network.

ZEC was 1 of the fewer assets that initially defied the broader sector-wide downturn successful October 2025. According to CryptoRank data, the token surged much than 440% during the month.

Although November and December brought heightened volatility, ZEC inactive closed some months successful the greenish with humble gains. However, 2026 has not been arsenic favorable for the privacy-focused cryptocurrency.

A broader risk-off sentiment crossed fiscal markets, combined with concerns surrounding the Electric Coin Company (ECC) team’s divided from Bootstrap, weighed connected the asset. ZEC declined much than 41% successful January.

The coin has extended its downward trajectory into this month. At property time, ZEC was trading astatine $227.22, down 4.29% implicit the erstwhile 24 hours.

Despite the sustained terms weakness, on-chain information suggests emerging affirmative signals. After a humble dip successful aboriginal January, the magnitude of ZEC held successful shielded pools began rising again.

At property time, much than 5 cardinal ZEC were held successful shielded addresses, accounting for astir 30% of the coin’s circulating supply.

“That means existent radical are sending shielded tx each azygous day, adjacent erstwhile there’s zero nett successful it,” an expert wrote.

The dependable summation successful shielded proviso suggests sustained idiosyncratic engagement and whitethorn bespeak continued assurance successful Zcash’s privateness infrastructure contempt short-term marketplace pressure.

In addition, Zcash mining trouble reached an all-time precocious successful aboriginal February. Because trouble adjusts successful effect to aggregate computational power, the determination signals heightened contention among miners and a stronger information illustration for the network.

An summation successful trouble indicates that further hash powerfulness has joined the network, whether done caller participants, expanded concern operations, oregon much businesslike hardware deployment. While this strengthens web security, it besides raises competition, reducing the expected artifact reward per portion of computing power.

The emergence successful trouble contempt broader marketplace weakness suggests that mining economics stay viable for astatine slightest a conception of operators.

This whitethorn bespeak competitory energy costs, operational efficiency, strategical positioning, oregon expectations of aboriginal terms appreciation. Overall, the information confirms increasing web information and security.

Read archetypal communicative ZEC Price Slides 25%: Why Are Miners and Privacy Users Doubling Down? by Kamina Bashir astatine beincrypto.com