Zcash Unravels as Leverage Unwinds Following Record-Breaking Rally

Zcash has been experiencing a sharp correction after its recent record-breaking run. The token's price dropped by around 10-12% over 24 hours, with traders facing liquidations totaling $27.6 million.

The pullback follows an extraordinary year for ZEC, which gained more than 2,400% and surged from below $500 in August to almost $1,300 this week.

Leverage grew alongside the price, with futures open interest climbing towards $2.9 billion near the peak. However, as volatility rises, traders are reducing their exposure, resulting in a decline to around $2.1 billion.

Institutional demand remains strong, with Grayscale's Zcash ETF holding approximately $533 million in assets under management as of Sept. 8.