Other than Bitcoin Cash (BCH), Zcash is probably the only other cryptocurrency that has given any meaningful gains in the last one week. The BCH pump can be directly attributed to the upcoming hard fork. But what about Zcash (ZEC), what could have triggered the current pump? From a look at everything about Zcash at the moment, this pump could be linked to one or a combination of the factors below.
1. A possible Coinbase listing in the near-term
In July, Coinbase published a list of cryptos they were considering for listing. One of them was Zcash (ZEC). So far they have added two of them and speculation is high that Zcash could be next. As with all other markets, there are people who are always in the know, about what could be about to happen next. In this case, the recent increase in price could be the result of investors taking positions in preparation for such a listing.
On the other hand, it could simply be investors following the trends and drawing inferences that this listing will happen at some point in the near future. That’s because Coinbase has been moving with speed to list the cryptos that they announced earlier in the year. Since there is nothing much going on in the rest of the market, investors could be positioning themselves in a crypto that has a semblance of good news coming up in the near future. This could also explain why Stellar (XLM) has been performing better than average in the last few days. It is also one of the coins that many speculate could be next on Coinbase.
2. News of ProgPOW
3 days ago, it emerged that the Zcash foundation had funded the development and implementation of ProgPOW. This is a POW algorithm that will take away the advantage that specialized ASICs have in mining Zcash (ZEC) and will make Zcash mining more decentralized.
This is a big deal because it not only makes Zcash more secure but also more appealing to users of Zcash as a privacy coin. News of this development triggered a pump in Zcash, and it could be holding it up as this news continue to filter into the market, and more people understand its implications to the long-term prospects of Zcash (ZEC).
3. The scaling potential of Zn-Snarks
Zn-Snarks is a Zcash technology for anonymizing transactions. Lately, this technology has gained prominence in the Ethereum community as a possible short-term scaling solution for the Ethereum blockchain. This could have created excitement around Zcash (ZEC) as a top privacy coin and could be creating FOMO around this coin.
Most likely reason
While all the above are plausible reasons as to why Zcash (ZEC) is pumping, the most likely reason is Coinbase. The other two have probably been factored into the market. The Coinbase listing ZCash is still largely speculative and could be exciting the market since no one knows the date. People could be taking positions, just in case, it is listed on Coinbase and FOMO starts.