Zcash (ZEC) is probably one of the best performers in the last one week, and there are no signs of a slowdown in its bullish momentum. Today, Zcash (ZEC) is up by over 5%, on a day that the entire market is in the red save for Nem and a few other altcoins coins.
ZCash’s rise is partly driven by Coinbase speculation. For the last few days, there has been speculation that Zcash (ZEC) could be the next one on Coinbase. As such, investors are taking positions in anticipation of a huge surge in the value of Zcash. Even the charts are shaping up for such a huge run-up, if Coinbase makes the big announcement. For instance, on the day chart, Zcash is consolidating at a significant resistance level at $138.
A Coinbase announcement that they are listing Zcash would almost certainly push it above this price point. In such a case, the possibility of Zcash (ZEC) testing $180 – $200 would be very high.
But what about the long-term? What next after Coinbase lists Zcash (ZEC)? Recently, Basic Attention Token (BAT) dumped after making huge gains prior to being listed on Coinbase. Could the same follow for Zcash?
Well, markets being as unpredictable as they usually are, Zcash could ease up after it’s listed on Coinbase, if indeed it gets listed. However, this would be more of a short-term phenomenon. That’s because Zcash (ZEC) has some strong fundamentals supporting it in the market. One of the key factors that support a possible rise in the value of Zcash (ZEC) is the growing demand for privacy coins in the market. This need is growing both at the institutional level, and the individual level.
Institutional demand is quite evident in the usage of ZCash’s privacy technology by JP Morgan, in offering its clients private transactions on the blockchain. At the individual level, the demand for private transactions is even higher. There are lots of people, especially those moving huge amounts of money that need some level of privacy in moving money. This use case cuts across both legal and illegal needs to move money. As blockchain technology becomes more entrenched in society and digital currencies gain in usage, privacy coins like Zcash will see an increase in usage in the market.
Zcash (ZEC) growth is also anchored on the fact that it has a good technology beneath it. Zcash privacy is based on revolutionary Zn-Snarks technology. This is a technology that even other cryptos such as Ethereum (ETH) are considering, as a tool that can act as a short-term scaling solution. This technological edge could see Zcash (ZEC) make huge gains as it gets more appreciated in the market.
All these factors lead to one conclusion, and that’s a possible long-term exponential growth of Zcash (ZEC). In the last Bull Run, Zcash was close to $1000, and it was not as entrenched in the market as it at this point. As such, the possibility of Zcash doing several times its December highs is quite high in the future.