Can Zcash (ZEC) Hit $500 In 2018?
What investors ask about most cryptocurrencies is whether it has the potential to rally to new highs. Most of the coins are trying to get off the red zone as sentiment changes. It’s along with such lines that many in the Zcash (ZEC) community ask whether the privacy coin has enough in its momentum to reach $500 in 2018.
What’s the market like at the moment?
Like every other coin in the market, Zcash faced a decline in the latest bearish trend. Like the top cryptocurrencies, it lost about 30% of its value between April and end of May.
Currently, the coin is trading at $236 against the US dollar, +1.22% in the last 24 hours, but still in the red by 2.68%. Zcash is ranked 25th on the market with a market capitalization of $965 million. In the last 24 hours, over $57 million worth of the coins has been traded.
According to CoinMarketCap, ZEC’s recent high is $386 reached on May 15th, when a positive sentiment surrounded the coin following the Gemini listing. However, the momentum was short-lived and it dropped to a recent low of $221 on May 28th.
The last time ZEC raced to touch the $500 level was way back on February 10th, when it rallied to rise to $511.75. Since then, the coin has struggled to reach that price, more so due to the difficult year that all crypto had. For the community, therefore, its perhaps time the coin rallied to reach at least that value in 2018.
With improving sentiment and general improvements on the coin, it’s possible. Who knows, it may even be able to try out the all-time high of $955 reached on January 7th.
What can help push ZEC towards $500?
One of the factors is increased adoption of the coin. If the current trend of getting accepted by vendors and merchants continues, then it could be vital. The coin, however, will likely depend on the events surrounding major coins, especially Bitcoin.
If BTC pumps and doubles its value towards the predicted over $20k price, then ZEC could get a rally towards $500.
It thus means that market performance, in general, will have a bearing on how the coin performs.
ZEC will also benefit more from getting listed on more exchanges in the coming days. This will likely happen as the coin prepares for more usability facilitated by its network upgrades “overwinter” and “sapling”.
Privacy and fungibility make ZEC top choice
Zcash is perhaps the most popular privacy-focused coin at the moment. it has even attracted reviews from varied fields, including one by privacy advocate Edward Snowden. Its zero-knowledge proofs, or zk-SNARKS, has been recommended even as much development continues.
Zcash provides a platform that not only allows users on the “dark web” but also can be used in legitimate ways, including adhering to AML regulations.
Another feature is fungibility which means the coin can be used as a store of value. Users can hold and use ZEC coins without the fear of their funds being labeled as “dirt”. The cryptocurrency is likely to see increased adoption as more mainstream users get on board.
As such, the coin can be used both as a medium of exchange as well as a store of value. But the most important factor is increased use by the end of 2018.
Increased appreciation for the privacy coin
One of the things that could push ZEC beyond the $500 price is increased understanding and acceptance of privacy coins. There have been that authorities could intensify a crackdown on such coins. But that sentiment seemed to be changing as illustrated by the New York regulators who allowed it to trade on Gemini.
According to Gemini owner Cameron Winklevoss:
“Part of the reason a coin like Zcash has a smaller market cap is because people are not sure if regulators will ever get comfortable with this type of technology, […] Today demonstrates that through education and collaboration and with the right controls in place, regulators can get comfortable with privacy technology.”
The result is that there’s more demand for the coin. Furthermore, with its security and privacy one of the best, ZEC is likely to see the value increase.
Zcash (ZEC) has the potential to reach $500. However, it will depend on a number of factors. The most important one is how the market behaves in the next few days. If the bullish signal holds, it could favor the coin.