Tracking the trading volume leaderboard, $ZEC ranks sixth with $171 million, a increase of +5.7%, and the current price is $635.87. This has been going on for several days now.
Just documenting my observation process. After the institutions revealed their positions, the volume of $ZEC jumped from an average of several tens of millions to over a billion, with the price skyrocketing from a few dozen dollars straight to $635, an increase of over 10x. Zcash is a classic privacy coin, with solid protocol-level technology; the implementation of zero-knowledge proofs was among the earliest in the industry, but the regulatory risks in this sector are high, and most exchanges gradually delisted it over the past two years. So, the mere revelation of institutional holdings is unusual and worth tracking.
I've been waiting for one thing: a decrease in volume. Because this kind of market has two scripts.
Script One: Institutions are still accumulating, more funds will follow, and the trend can continue, with potential upward price movement.
Script Two: The revelation of institutional holdings serves as a sell signal, with increased volume indicating they are distributing tokens to retail investors; once the volume decreases, the story ends.
The difference lies in the trading volume.
If the average trading volume of $ZEC shrinks to below $50 million this week, I lean toward Script Two, staying on the sidelines and not chasing. If it maintains above $100 million, it indicates new funds are entering the market, and Script One is still in play, making it worth considering a small position.
$600 is a significant support level in my view. If the volume shrinks but the price holds at $600, that counts as stabilization; if the volume shrinks and the price falls below that, it's time to cut losses and exit.
Today $171 million, I’ll take another look at tomorrow's number.
Zcash's privacy technology (zk-SNARKs) serves as a technical reference for many subsequent zero-knowledge proof projects, including Polygon's zkEVM. So, institutions' interest in it may not just be for the privacy narrative, but also possibly positioning themselves in upstream assets related to ZK technology. If this judgment holds, persistent volume would indicate institutional endorsement of this logic.
Just documenting my observation process. After the institutions revealed their positions, the volume of $ZEC jumped from an average of several tens of millions to over a billion, with the price skyrocketing from a few dozen dollars straight to $635, an increase of over 10x. Zcash is a classic privacy coin, with solid protocol-level technology; the implementation of zero-knowledge proofs was among the earliest in the industry, but the regulatory risks in this sector are high, and most exchanges gradually delisted it over the past two years. So, the mere revelation of institutional holdings is unusual and worth tracking.
I've been waiting for one thing: a decrease in volume. Because this kind of market has two scripts.
Script One: Institutions are still accumulating, more funds will follow, and the trend can continue, with potential upward price movement.
Script Two: The revelation of institutional holdings serves as a sell signal, with increased volume indicating they are distributing tokens to retail investors; once the volume decreases, the story ends.
The difference lies in the trading volume.
If the average trading volume of $ZEC shrinks to below $50 million this week, I lean toward Script Two, staying on the sidelines and not chasing. If it maintains above $100 million, it indicates new funds are entering the market, and Script One is still in play, making it worth considering a small position.
$600 is a significant support level in my view. If the volume shrinks but the price holds at $600, that counts as stabilization; if the volume shrinks and the price falls below that, it's time to cut losses and exit.
Today $171 million, I’ll take another look at tomorrow's number.
Zcash's privacy technology (zk-SNARKs) serves as a technical reference for many subsequent zero-knowledge proof projects, including Polygon's zkEVM. So, institutions' interest in it may not just be for the privacy narrative, but also possibly positioning themselves in upstream assets related to ZK technology. If this judgment holds, persistent volume would indicate institutional endorsement of this logic.