Zcash Price Hinges on Successful Test of Upcoming Upgrade

Zcash has entered October with its next network upgrade, NU7, approaching testnet. The upgrade is expected to bring faster block times, new shielded action limits, and a Network Sustainability Mechanism that recycles part of transaction fees into future block rewards. However, the upgrade's mainnet activation is still pending, and a successful test is crucial for its activation on November 5.

The Zcash price has been impacted by the upgrade's uncertainty, trading at around $1,330 on October 4, down 19% from its peak in September. Analysts predict a potential price recovery to $1,600 to $1,700, requiring a 20% to 28% increase from the current price. However, a failed test or another round of selling could deepen the price retreat.

Despite the uncertainty, Zcash mining activity has surged more than 2.5 times this year, with each mining rig generating roughly twice the daily profit of a Bitcoin mining rig. The capitalization of ZEC is around $22.7 billion, but the depth of bids that would absorb sales near a given price remains unclear.