The cryptocurrency market is brimming with optimism as traders anticipate significant surges to new
The cryptocurrency market is brimming with optimism as traders anticipate significant surges to new all-time highs. Despite a relatively flat performance for most digital tokens over the past 24 hours, privacy coins have experienced a notable spike in trading activity.
According to CoinMarketCap, the 24-hour trading volume for privacy cryptocurrencies surged by nearly 115%, reaching $1.4 billion. This heightened activity, even amid minor price movements, suggests that investors are positioning themselves for potential rallies.
Source – Coinmarketcap
The increased trading volume indicates that enthusiasts might be reshuffling their holdings in anticipation of a new bull market.
Cryptocurrency analysts predict substantial upsurges for altcoins, with positive developments such as Ethereum ETFs acting as catalysts.
Notably, Crypto Rover forecasts that approved spot ETH exchange-traded funds could inject billions into the altcoin market.
Amidst this optimism, privacy coins like Zcash (ZEC) are gaining attention. Zcash remains on the radar due to its recent ecosystem developments, including the latest decentralized grant allocation approval.
This development underscores the ongoing innovation within the Zcash network, potentially setting the stage for future growth.
The US Spot #Ethereum ETF will attract billions of dollars.
— Crypto Rover (@rovercrc) July 23, 2024
Understanding privacy cryptocurrencies
Privacy tokens are digital assets designed to ensure anonymity by obscuring transaction details across different networks.
These tokens, such as Monero, OASIS, and Zcash, provide privacy-focused technology that hides the sender and receivers identities, appealing to individuals who value financial privacy.
Monero, for instance, employs privacy-preserving features by default, using ring confidential transactions (ringCT), ring signatures, and one-time-use stealth addresses to conceal every transaction detail.
In contrast, Zcash offers both transparent and shielded transactions. It utilizes zero-knowledge proofs (zk-SNARKs) to validate financial transfers without revealing transaction details, balancing privacy with transparency.
Zcash community approves proposal to allocate 20% of block rewards toward grants
— Bradicoin (@Bradicoin10) July 19, 2024
Zcashs current price outlook
Despite increased investor activity in privacy cryptocurrencies over the past 24 hours, Zcash (ZEC) has experienced bearish price action.
The altcoin dropped nearly 4%, trading at $30.60 at the time of publication. However, its daily trading volume surged by 182% to $279.22 million, highlighting heightened investor interest.
Zcashs downtrend mirrors broader market tendencies. The cryptocurrency sector has shown bearish movements following a recent upswing that pushed Bitcoin above $68,000.
Bitcoin is currently trading at $66,700, with market sentiments suggesting new surges to all-time highs. Analysts believe Bitcoin could reach $80,000 next month, potentially triggering explosive growth in the altcoin market.
Zcash is poised to capitalize on its status as a leading privacy token, potentially skyrocketing in the upcoming bull run.
However, investors should remain cautious of regulatory developments that could impact privacy assets.
For example, the US Treasury Department banned Tornado Cash, a protocol facilitating anonymous transactions on the Ethereum blockchain, in 2022.
This ban sparked concerns about the regulatory environment for privacy crypto projects.
The @USTreasury has banned all Americans from using decentralized crypto-mixing service @TornadoCash or any of the Ethereum wallet addresses tied to the protocol. Those who do may face criminal penalties.
— CoinDesk (@CoinDesk) August 8, 2022
Regulatory challenges for privacy coins
Privacy coins face significant regulatory challenges. Hackers often exploit these assets anonymity to facilitate illicit activities, drawing regulatory scrutiny.
Monero (XMR), for instance, has struggled to maintain upward momentum due to regulatory pressures. Such developments could hinder the growth of privacy cryptocurrencies, even amid broader market rallies.
The post Zcash (ZEC) sees surge in trading volume as privacy coins gain investor attention appeared first on Invezz
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
0.00