Zcash Rally Sparks Fears of Narrative-Driven Price Surge

Zcash's recent surge to a $19.48 billion market cap has caught the attention of F2Pool co-founder Chun Wang, who believes the rally is driven more by narrative than fundamentals.

The price of ZEC has risen over 2,200% in the past year and 125% in just 30 days, but Wang argues that this growth doesn't necessarily translate to real-world use or stronger network adoption.

Wang points out that a big market cap does not mean a coin earned its place. He questions whether Zcash's valuation is justified given the project's history and current development state.

The co-founder notes that Zcash's early token distribution was unfair, with 20% of every block reward going to founders, employees, advisors, and early investors for four years. This allocation accounted for about 10% of the total supply.