Zcash Price Rally Sparks Questions About Sustainability
The Zcash (ZEC) price has surged by over 140% in a month and reached $1,249 before pulling back to $1,145.45. The rally is attributed to several factors, including ETF demand, the Ironwood upgrade, short liquidations, and renewed interest in privacy.
However, F2Pool founder Chun Wang has questioned the narrative behind the move, calling it a 'narrative bid'. He points out that Zcash's early rewards allocation and approach to privacy are not ideal. The price rally also brings concerns about its sustainability, with some analysts suggesting that it may be a pump and dump scenario.
The Ironwood upgrade in July closed the legacy pool and made the total supply easier to audit, while futures positioning added fuel to the recovery. Perpetual open interest reached $2.8 billion, and traders' short positions were liquidated when ZEC moved above $1,000, adding further buying pressure.
The sharp rise has brought questions about what is really behind the move, with several factors arriving at almost the same time. The combination of new demand and limited supply has helped push the ZEC price higher.