ZEC price movement: how will the planned Proof-of-Stake (PoS) switch impact the price of ZEC?

Zcash ZEC/USD is a privacy-focused cryptocurrency that takes advantage of cryptography to give its users optional anonymity when they conduct any transaction.

It does this by using the zk-SNARK zero-knowledge proof technology, allowing nodes on the network to verify transactions without revealing sensitive information about them.

Transition to Proof-of-Stake (PoS) as a catalyst for growth

On November 17, we discussed how Zcash approached its first halving, which saw ZEC blocks rewards drop from 6.25 to 3.125.

Initially, Zcash just copied and modified Bitcoin’s code, which meant that it used Proof-of-Work (PoS) for the validation of blocks.

However, on November 19, the developer behind Zcash, Electric Coin Company (ECC), made an announcement that it would move the protocol from Proof-of-Work (PoW) to Proof-of-Stake (PoS) within the span of the next three years. 

This upgrade will limit the ZEC price’s downward pressures by removing miners who immediately liquidate the token for Bitcoin or FIAT currencies.

Josh Swihart, the senior vice president of growth at ECC, said that the main idea behind this switch is to increase the utility for ZEC through capabilities that include yield generation by staking and on-chain governance mechanism for ZEC holders.

All of this has the potential to boost the value of the ZEC token by the end of November and even beyond that.

Should you buy Zcash (ZEC)?

On November 22, Zcash (ZEC) had a value of $206.88.

To get a better perspective as to exactly what kind of value point this is for the token, we will be going over it’s all-time high value as well as its performance in October.

Zcash (ZEC) had its all-time high value on October 29, 2016, when the token reached a value of $3,191.93. At its ATH value point, the token was $2,985.05 higher in value or by 1442%.

With that in mind, we will analyze last month’s performance. On October 1, ZEC had its lowest point of value of the month at $106.92.

Its highest point of value was on October 24, when the token reached a value of $188.81. Here, we can see that the token increased in value by $81.89 or by 76%.

Additionally, from October 24 to November 22, the token increased by $18.07 or by 9%.

According to data from IntoTheBlock, Zcash had $7.82 billion in transactions greater than $100,000 within the last seven days.

With all of this in mind, we can expect Zcash to reach a value of $220 by the end of November.

The post ZEC price movement: how will the planned Proof-of-Stake (PoS) switch impact the price of ZEC? appeared first on Invezz.

Publication date: 
11/22/2021 - 12:58
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