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While Bitcoin is trading sideways in a certain range in the cryptocurrency market, some altcoins are attracting attention with their gains. One of these altcoins is the privacy-focused Zcash.
According to analysts, $ZEC’s recent sharp rise is due not to a single development, but rather to a combination of factors including the ETF effect, a resurgence in interest in privacy-focused cryptocurrencies, and the squeeze on short positions created by leveraged trading.
However, F2Pool co-founder Chun Wang questioned $ZEC’s rise. According to Wang’s assessment, a significant portion of the rally stems from temporary factors such as market narrative, speculative demand, and short squeeze, rather than fundamental usage growth.
“The Rise of $ZEC is Entirely Narrative-Driven!”
F2Pool co-founder Chun Wang, in statements made via X, claimed that Zcash’s recent rise is largely narrative-driven.
According to Wang, a crypto asset reaching a high market capitalization doesn’t necessarily mean it deserves its current market ranking.
Wang noted that Zcash’s ranking alongside projects like Solana and Hyperliquid in market capitalization doesn’t necessarily mean it has a similar level of real-world usage to those networks.
According to him, $ZEC cannot compete with a top 10 network by market capitalization due to reasons such as unfair token distribution, governance issues in the Zcash ecosystem, high compensation claims against the team and developers, prolonged operational conflicts, and a security vulnerability in the Orchard privacy pool that allegedly existed for about four years.
However, Wang added that Solana and Hyperliquid each have their own points of criticism and have achieved real use cases, while $ZEC has only seen price increases linked to exchange listings and short squeeze, and this should not be equated with real-world use.
*This is not investment advice.
coindesk.com
bitcoinist.com
coinfomania.com