Zcash rises 13% to $460 as a dynamic fee proposal, whale accumulation, and Cypherpunk’s growing ZEC treasury push the offering below a key resistance zone.
Summary
- Zcash price rose 13% to $460, with market cap and 24-hour volume rising as the price broke away from a largely flat crypto market.
- Developers and Shielded Labs proposed moving from fixed fees to a dynamic fee market to reduce costs and improve efficiency during congestion.
- Cypherpunk expanded its ZEC treasury, while a major holder sent tokens to Hyperliquid to continue as ZEC tests multi-touch resistance on Crypto Pulse cards.
The price of Zcash (ZEC) rose 13% to $460, outperforming broader cryptocurrency markets that have been trading sideways in recent sessions, according to market data.
The privacy-focused cryptocurrency’s market capitalization increased alongside a rise in 24-hour trading volume, data from trading platforms showed.
The rally follows a dynamic compensation proposal announced by Zcash developers and Shielded Labs. The proposal aims to replace the network’s static transaction fee structure with a dynamic fee market system, aimed at reducing costs and improving transaction efficiency during periods of high network activity, the development team’s announcement said.
The price of ZCash increases after the shift from fixed to dynamic fees
Trading volume data indicated increased participation from both retail and institutional market participants over the 24-hour period. Cypherpunk Technologies expanded its Zcash holdings and appointed Zcash founder Zooko Wilcox as an advisor, the company confirmed.
On-chain data showed significant accumulation by large wallet holders. One major wallet holder increased its position and transferred tokens to Hyperliquid to establish long positions, blockchain analytics showed. Such accumulation generally reduces the circulating supply available for trade.
According to technical analysis from trader Crypto Pulse, Zcash is currently trading below a resistance level that has previously capped several rallies. A breakout above this zone could lead to further gains towards previous cycle highs, while failure to break resistance could result in a pullback to nearby support levels, technical indicators suggest.
The cryptocurrency’s price movement contrasts with the broader digital asset market, which has shown limited directional momentum in recent trading sessions.
