Zcash price prediction: What’s in store for 2022?
Zcash provides users with the option of confidential transactions and financial privacy
- A quick look back
- Zcash tokenomics
- From the Zcash whitepaper
- Zcash price history
- What do the forecasters predict?
A quick look back
Zcash (ZEC) is a popular cryptocurrency with a high trading volume. Through the use of zero-knowledge proofing technology, the Zcash platform provides superior transaction privacy and anonymity.
Although not a fork, Zcash was built on Bitcoin (BTC)’s open-source protocols. As such, it has many similarities, including the proof-of-work (PoW) consensus method and similar tokenomics.
But as well as improved transaction privacy, Zcash provides block times up to eight times faster than BTC and cheaper transaction fees. As such, Zcash has gained high adoption rates among merchants since launching in 2016.
After network upgrades in 2018/19 aimed at improving block time efficiency, Zcash announced its intention to move to the proof-of-stake (PoS) consensus method, on the grounds of greater security, efficiency, decentralisation and environmental benefits.
For an extensive look at the ins and outs of this well-known cryptocurrency, head on over to our in-depth guide. Or stay with us here as we dive into the Zcash price prediction.
At the time of writing on 17 August 2022, ZEC is trading at around $73.20. ZEC’s market capitalisation is almost $1.1bn, putting it at number 50 on the crypto charts. A recent trading volume high of roughly $100m was about 9% of the market cap, a robust figure indicative of healthy transactional activity.
Just like BTC, ZEC’s maximum supply is 21 million. Of that figure, more than 15 million ZEC coins are in circulation, approximately 72% of the total supply.
Zcash did not go down the initial coin offering (ICO) route, having been released before the ICO boom of 2017. Instead, the project initially received funding from Silicon Valley investors. In November 2020, the Zcash community voted to allocate 20% of mining rewards to the founders and developers, as a means of keeping the project operating.
Mining rewards are halved every four years to keep inflation in check.
From the Zcash whitepaper
The Zcash Protocol Specification paper was published in January 2021 and is 164 pages long.
The whitepaper states: “Zcash is an implementation of the Decentralised Anonymous Payment scheme Zerocash, with security fixes and improvements to performance and functionality.”
It goes on to say: “It bridges the existing transparent payment scheme used by bitcoin with a shielded payment scheme secured by zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs). It attempted to address the problem of mining centralisation by use of the Equihash memory-hard proof-of-work algorithm.”
So that’s the foundational principles of Zcash laid out. Now, let’s take a look at the charts and potential price predictions.
Zcash price history
A look at recent trading activity may give us a good basis for our Zcash price prediction.
Unsurprisingly, ZEC fared well in the early 2021 crypto bull run, posting immense price spikes throughout April and May. So far, so standard for the crypto scene. But in November, ZEC once again began to rocket, more than doubling in value between 19 and 25 November 2021 alone to hit a price point of $304.90. The surge coincided with Zcash’s announcement that it intends to move to the PoS consensus method in the foreseeable future.
However, a bearish pattern followed November’s peak, and the coin fell to a 12-month low of $82.28 on 24 January 2022. On 8 March, GrapheneOS (a non-profit, open-source project focused on privacy and secure mobile OS) began accepting Zcash, and there was some recovery, with Zcash reaching trading highs of $212.17 on 26 March 2022.
On 27 April, US whistleblower Edward Snowden revealed that he was one of the six key figures who took part in the Zcash set-up ceremony that helped launch the privacy coin in 2016. Zcash remains in a bearish place and has fallen sharply since the March highs, and on 12 May 2022, following a market-wide crash, the token plummeted to lows of $70.10.
Since then there have been some important on-chain developments. A new upgrade, the NU5 – which allows transactions to be shielded by default, rather than forcing users to opt-in to hide payment details on the blockchain – went live on 31 May.
However, following multiple marketwide downturns and mass sell-offs towards the end of the second quarter, the token was trading at lows of $51.99 on 30 June. As of 17 August 2022 and at the time of writing, the token is currently trading at $73.20.
Now over to the forecasters for the latest Zcash crypto price predictions.
What do the forecasters predict?
CryptoNewsZ has a moderate outlook, listing a Zcash price prediction for 2025 of $480. The forecaster describes Zcash as having “great potential”.
The digital forecaster WalletInvestor presents a Zcash price prediction for 2022 that suggests the coin will take off in October, soaring past $100. Looking forward five years, the forecaster offers a price target of $165.53.
The forecasters at TradingBeasts give a prediction for 2025 which suggests the coin should be worth $95.34 by year-end, while according to CoinPriceForecast the year-end Zcash price prediction for 2030 is $253.98.
The Zcash coin price prediction from DigitalCoinPrice is that the $200 price point could be surpassed towards the end of 2027, with an average price point of $138.64 in 2025 and $226.89 in 2028, rising to $331.96 in 2030.
Please keep in mind that forecasters use algorithms to make their ZEC price predictions. While useful as a guide, they do not constitute genuine financial advice.
Remember also that this article is for educational purposes only, and does not constitute genuine investment advice. Please conduct extensive independent analysis after reading a ZEC price prediction before opening any trade.
Is Zcash a good investment?
Zcash has the potential for long-term returns, and algorithmic forecasters expect it to rise. That said, crypto assets are highly volatile. Never invest more than you can afford to lose.
How high can Zcash go?
WalletInvestor suggests Zcash has the potential to hit over $100 in 2022, while TradingBeasts suggests a value of $95.34 at the end of 2025.
That said, it also has the potential to fall. This Zcash price prediction is for educational purposes and does not constitute investment advice.
Should I invest in Zcash?
If you believe that Zcash has solid fundamentals and strong potential to rise, then you should do extensive due diligence and come to a decision accordingly. Never invest more than you can afford to lose.