Zcash (ZEC) continues to outperform the broader crypto market. The top-tier privacy-focused altcoin rose more than 16% over the past 24 hours, trading at around $574 during the late North American session on Friday, November 14.
Meanwhile, Bitcoin (BTC) led the broader altcoin industry in a sell-off, sending the total crypto market cap down 2.3% over the past 24 hours to hover around $3.22 trillion at the time of writing. ZEC price rose against all expectations as crypto traders showed extreme fear of further capitulation.
Why is Zcash price outperforming the broader crypto market?
High demand for privacy-focused tokens by whale investors
Demand for ZEC by institutional investors has increased significantly in recent times. Earlier this week, a16z noted that the growing need for privacy will boost overall demand for the related altcoins.
Source: X
Cypherpunk announced that it has acquired a total of 203,775 ZEC, worth approximately 50 million. Meanwhile, the Grayscale Zcash Trust has grown to a total of $200 million in assets under management.
Rising demand for privacy-focused coins amid the criminalization of privacy rights
ZEC’s impressive performance is largely influenced by the rising demand for privacy-focused crypto projects, amid the notable criminalization of privacy rights worldwide.
For example, under the European Union’s new anti-money laundering (AML) rules, people in this region can make up to €10,000 in cash payments. Furthermore, the European Union expects crypto projects to verify identity for transactions over €1,000, in addition to banning privacy accounts and coins.
What is the future for ZEC?
After outperforming almost all other mid-capped altcoins in recent months, ZEC price is well positioned to continue the same trend. The large-cap altcoin, with a fully diluted valuation of approximately $12.1 billion, registered a 32% increase in its daily volume and hovered around $2.09 billion at the time of writing.
From a technical analysis perspective, ZEC price is well positioned to rise exponentially and reach $1000 soon. However, ZEC price needs to close consistently above $690 in the coming days to negate a potential pullback to $223 soon.
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