Zcash plummeted: from a peak of $700 to just $316 two weeks later.

The privacy coin market once again experienced fluctuations, with Zcash becoming the latest focus of attention. On December 2nd, the price of ZEC dropped to as low as $316. In just six days, the price dropped by more than 30%, catching many investors off guard. Against the backdrop of reduced market liquidity and stricter regulations regarding privacy assets, Zcash’s technical prospects have become even more difficult. Analysts generally believe that its short-term trend will remain bearish. It is expected that ZEC may continue to decline towards the support level of $297–311 before it can potentially experience a real reversal. For the entire privacy coin market, this is not just a matter of price fluctuations; it also represents a sign of a decline in market sentiment and risk appetite.

Common Questions

● Why did ZEC drop to $316?

As the hype-driven momentum fades, the rebound of privacy coins is gradually subsiding.

● How much damage has been done?

Since November 26th, ZEC has fallen by more than 30%, with its market value shrinking from $115 billion to $5.67 billion.

● What role does governance play in this situation?

Zcash’s off-chain committee system has drawn severe criticism from industry leaders like Naval Ravikant and Vitalik Buterin.

● What are the future prospects?

Analysts warn that if ZEC cannot regain the resistance level of $380, it could continue to decline further.

Double-digit losses, ZEC’s market value shrinks

The privacy coin Zcash (ZEC) fell to $316 on December 2nd, reaching its lowest point in nearly a month. This decline occurred because the strong momentum that drove its recent increases seems to have worn off, resulting in significant losses.

ZEC once rose to near $380, thanks to the overall increase in the crypto market driven by news related to asset management giant Pioneer Group. However, this momentum quickly faded, indicating that ZEC’s support is weak, and any potential rebound is short-lived and driven by emotions rather than fundamental factors. As of this writing (1:30 PM ET), ZEC has fallen below $350.

ZEC is one of the few digital assets that have experienced negative performance over just seven days. In fact, it became the only high-value altcoin to experience double-digit losses. Since reaching a peak of $700 on November 20th, ZEC’s market value has dropped from nearly $11.5 billion to $5.67 billion, thus losing its position as the most valuable privacy coin. This reversal has led to accusations of a coordinated “scalping” scheme, with critics arguing that the rebound was driven by hype rather than fundamentals.

The governance system has been attacked

Analysts point out that Zcash’s controversial governance model is a key factor behind its recent difficulties. This model has received severe criticism from industry experts. The controversy arose on November 26th, when co-founder Zooko Wilcox wrote an article on X defending the existing committee-driven off-chain governance structure. This framework, supported by organizations like the Zcash Community Funding Committee (ZCG), assigns decision-making power to a small group of designated individuals—a approach many consider undermines decentralization.

Wilcox argued that the system is effective because it relies on “thoughtful and independent” individuals who are committed to the protocol’s mission. His argument immediately sparked opposition: Naval Ravikant, who had previously praised ZEC’s performance, called the governance system “obsolete.” He pointed out the flaws in the system: “

A ‘trusted’ third party is a security vulnerability; ‘thoughtful and independent’ doesn’t matter at all. Governance of all decentralized protocols should occur on-chain and privately.”

Ethereum co-founder Vitalik Buterin also joined the opposition, claiming that “token voting is problematic in many ways.” According to Buterin, “If the decision-making process is left to the average token holder, privacy will be compromised over time.”

有关Zcash治理根本未来的公开辩论与大幅价格下跌相吻合;自Wilcox在11月26日发帖以来，ZEC已经下跌超过30%。尽管如此，一些技术分析师预测该隐私币会进一步下跌。分析师Ardi在12月2日的一则帖子中分享了看跌的前景，表示他们预计下跌将持续直到达到关键支撑水平。

“我们正在直接磨向297美元至311美元的磁铁。RSI在这里挤压，但价格几乎没有反应，这意味着卖家仍在窒息市场。当指标大喊‘买入’时，价格却无动于衷，通常意味着洗盘会更深，”分析师解释道。

Ardi确认他们会保持空头头寸，除非ZEC重回380美元水平。