There are countless cryptocurrencies in existence, according to a report, over a thousand. Given the fact that the first, Bitcoin, made its code an open-source one, all the rest had to do was just copy and adapt as they liked.
The proliferation of cryptocurrencies means they all don’t get the same publicity. There are even those that get no publicity at all. The common ones are usually those with the highest value or market cap, like Bitcoin, Ethereum, Tether, XRP, Litecoin, etc. Or the ones that have been hyped by the internet, such as Dogecoin.
But there are cryptocurrencies that are making good returns for their investors without generating so much noise. An example of such a digital asset is Zcash or ZEC. This digital asset is a lot like Bitcoin and has a lot of potential too.
Determining its potential is not easy, and if you are planning to invest in Zcash, that’s something you will want to know. Fortunately, we have examined the digital asset using experts’ opinions and analysis. Here, we discuss the future prices of Zcash and if it is worth investing in.
What is Zcash?
Zcash is not your popular digital asset, and unless you are looking for it, you are unlikely to come across a piece of news about its price. That is why it is necessary to explain what it is all about before we start examining its price prediction.
ZEC coin was introduced as a digital currency with its first mining in October 2016. But development started as far back as 2013. It was led by Matthew Green, the John Hopkins professor, along with some graduate students. Later on, the Zcash Company, led by Zooko Wilcox, will complete the work with over $3 million raised from venture capitalists.
The initial hype surrounding the digital asset was very high. Within a week of its first mining, a token was already worth $5000. Zcash was developed using Bitcoin codebase, so it is not surprising that it is similar to bitcoin in many ways. For example, it has a maximum supply of 21 million tokens too.
However, what Zcash uses as a unique selling point is the anonymity of transactions. According to the creators, the privacy of transactions on Zcash is exceptional. While it also posts transaction data on a public blockchain, there is an option for confidentiality.
This option comes in the form of a shielded transaction that makes it possible to have financial privacy. It integrates Zero knowledge proof, a feature that makes it possible to verify transactions without knowing how much is sent, the recipient, or the sender. This feature is an optional one as transparent transactions are also very possible. It is also possible to have selective disclosure where a user can determine which of the transaction details they wish to make public or share.
The Zcash Company changed its name to Electric Coin Company in 2019. It did this, claiming its official name has always been Zerocoin Electric Coin Company which will now be known as ECC.
Although the creators have said the privacy features of the currency are not designed for illegal activities, the privacy features continue to be investigated. In a paper titled Alt-Coin Traceability and released in May 2020, it remains questionable if Zcash is as private as it claims to be. Recently, ECC announced plans to donate all the company shares to a non-profit organization known as the Bootstrap Project.
According to the creators, Zcash is built on rigorous science. The tokens fall into either the shielded pool or transparent pool. Observations show that most users do not make use of the privacy options available on the network. It is why it is regarded as the privacy coin.
ZEC addresses are of two types – the T-addresses and the Z-addresses. The T-addresses are transparent, while the Z-addresses are private. Beyond the privacy of Zcash, another significant feature is its fast transactions that attract very low fees.
Now that you have a concrete idea of what Zcash is all about, it is time to dive into the price, from price history to price prediction.
When Zcash was first launched in 2016, it garnered attention which worked in its favour. Within the first few weeks, it reached an incredibly high price of around $6000. But this didn’t last long. It later came down drastically to stabilize at between $40 to $70. The price of Zcash has always been fluctuating; for instance, it was worth about $900 in 2018.
Coinmarketcap rates ZEC as the 35th most valuable cryptocurrency by market cap. However, its fluctuations and, most importantly, the slump from thousands to below hundred is worth looking into.
To understand the price history of Zcash coin, it is necessary to understand the factors that influence the increase in the value of cryptocurrencies. Generally, the excitement of its launch and similarities with Bitcoin must have helped it during its launch to achieve the incredibly high value.
After that, the token would have a quiet year till May 2017. This was the year the developers partnered with JP Morgan to introduce Zcash privacy technology to the JP Morgan blockchain platform. The partnership led to a spike in price, with Zcash trading for about $400 by June of that year. Its market value also increased, and it entered the top ten cryptocurrencies by market capitalization. The price later returned to its regular value below a hundred.
In 2018, the price increased again thanks to the crypto boom that started in late 2017. The price increased to about $900, but this didn’t last long. With the end of the crypto boom also came a fall in value for the currency. In June 2018, it rose above $100 again.
It took until February 2020 for the price to increase again, thanks to the efforts of crypto bulls. By August, it has managed to cross the $100 mark once again. It will later drop in value but was able to maintain stability at a level above its previous lows.
Throughout this period, the ZEC protocol has improved tremendously. However, its first halving in 2020 has a significant effect on the price, just like it does with other cryptocurrencies.
Now that we have an overview of what the price has been in the past years, it is time to look at what it would be worth in the coming years.
Zcash price prediction 2021
Khani predicts Zcash Possible targets for 2021
We can see that the stoploss is dynamic. If the price falls below the stoploss line, it should be exit due to the formation of a wedge pattern.
The one quality that almost all cryptocurrencies have in common is their volatility. It is why retail investors get involved hoping to make some massive gains. It is also why institutional investors shun them. But most importantly, it is why predicting the future value is tricky.
Doing so requires technical analysis and studying market trends, but sometimes, that isn’t enough. There are just so many variables involved. For instance, no one knew that Doge would reach the new highs it has managed to reach simply because no one could have predicted that Elon Musk will encourage people to buy Dogecoin.
That said, the best way to determine the future price of a cryptocurrency is to examine different expert opinions on its price. Using these, it is easy to have a general outlook of how things will turn out. This is what we do here.
Currently, the price of Zcash is $170.86, which is contrary to the opinion of many prediction platforms. For example, Wallet Investor predicts that the price at the end of the year would be $55.304. This would mean a massive drop in price.
It is not only WalletInvestor that has this pessimistic view. DigitalCoinPrice also shares the same outlook. In its opinion, ZEC price will not increase in 2021, and it could sink to as low as $7.36. It, however, predicts that it bounces back to reach above $50 before settling in the $30 to $40 range for the year.
CryptoGround.com also expects ZEC price to drop to $57 this year.
Looking at all these predictions, it appears that analysts have a particularly bearish. This shows how the volatility of the market can make the price predictions to be very inaccurate.
Since the time when these predictions were made, a lot of factors have come to play, leading to the price of Zcash increasing gradually. It has now crossed the $100 and $150 mark, inching closer to $200. With these changes, many crypto price prediction sites have changed their forecasts.
For instance, DigitalCoinPrice now expects that Zcash will keep rising and should cross the $200 mark by April 2021. It expects that it will remain above $200 till October and will peak at $235.99 in September. However, it predicts a drop towards the end of the year, with a forecast of Zcash finishing the year at $194.23.
However, WalletInvestor does not appear to share the optimism. It remains stuck on poor performance for Zcash in 2021. According to its new predictions, the digital asset price will be much lower than its current price for most of the year.
Even though it predicts that Zcash will peak at $282.58 by October 2021, this is merely a massive fluctuation in price. It expects it to drop to below $100 by the middle of the number. All these are, however, average prices.
On the maximum price level, it predicts that Zcash will pass the $500. But don’t get too excited; the minimum price is predicted to be $0.000001 with a peak at $25.377.
While WalletInvestor might be playing the devil’s advocate, there are others who have a more optimistic view. Previsioni Bitcoin, crypto platform has a very positive outlook for Zcash despite the poor performance in recent years.
According to its predictions, Bitcoin will reach $566.035 by December. This predicted growth is widely optimistic when one considers how static ZEC price prices have been in recent years. But it is the crypto market, after all, and anything could happen.
Previsioni predicts that the price of Zcash from July to September would be around $284.075, and it will continue to increase till it achieves over $500 in December, making it more than double in value.
Another Zcash prediction is that of Long Forecast, which believes that Zcash could be worth as much as $350 by the end of the year. Apart from February, where it predicts that ZEC price could fall to $85, the outlook for every other month is bullish.
It predicts Zcash coin to hit $300 as early as April. However, it will be within the $200 to $280 range for most of the year before crossing the $300 mark again in October and finishing the year on a high note.
Thus, the highest projeted price for 2021 is $350 but it could go as low as $7.36 too.
Zcash price Predictions 2022 to 2025
Beyond 2021, the long-term prediction of Zcash also gives insights into whether it is a worthwhile investment vehicle.
DigitalCoinPrice predicted a poor outlook for Zcash back in November 2020. According to its prediction, Zcash could crash to as low as -$3.62 by May 2023. However, it has changed its tune for a more positive one following the encouraging performances.
Its update Zcash price prediction forecasts the average price of ZEC to be $257.39 in 2022, $299.75 in 2023, $274.24 in 2024, and $428.81 in 2025. The most notable thing about this prediction is how it is overwhelmingly positive, with climbs throughout except in 2024. Even the drop in 2024 is followed by a powerful rise in value by 2025.
This gives investors the optimism and confidence they need to put their money into the Zcash. Even though predictions are not always accurate, this one suggests that the price will not crash in the next five years.
Trading Beasts also have a similar although less positive outlook. It predicts that the price of Zcash in 2024 would be around $234.1 at its peak. This prediction was made when Zcash was worth $142.53, and even then, the average prices were disappointing.
It predicts an average price of $159.1 in 2024. When one compares that with the current price above $170, it is a drop. Making the outlook to be negative in the long run.
A more optimistic outlook is that of Coinliker. The platform is known for its optimistic predictions, and it does the same for Zcash. It predicts the price to peak at $252.86 between 2021 and 2022, $424.29 between 2022 and 2023, and $921.43 by 2025.
It has explained that its price prediction is not a wild assumption but based on the unique algorithmic analysis. In their opinion, the increased adoption and technological developments would be the two major factors that will push the price.
If this happens, Zcash would see a level of unprecedented growth unlike any before. This would, of course, benefit investors who will appreciate a change from the slow movements of the price.
It also predicts that the cryptocurrency would perform excellently as a long-term investment. According to its data, ZEC prices could hit $231 by December 2021, peak at $320 in 2022, and by 2025, achieve an average price of $650.
Other platforms have also made predictions on the likely price of Zcash in the next few years. The one thing they all seem to have in common is that they are positive. Even WalletInvestor predicts that Zcash would be worth $361 by 2025.
For 2023, Previsioni Bitcoin believes Zcash would be worth $592.70, and Cryptoground predicts a whopping $1358.81. The only negative outlook is that of Long Forecast, which predicts that Zcash would drop to $90 by 2023.
Judging by all these price predictions, there is a generally positive forecast as to the performance of Zcash in the coming years.
Technical Analysis of Zcash price
Having a precise outlook of what Zcash could be worth in the future is important for investors. To do this, it is not enough to just look ahead; it is important to look behind and around too.
At present, Zcash is enjoying one of its best price forms in a long time. It has reached $190 before dropping to $171 and has been able to withstand going below the $100 mark. Not dropping below $100 is essential for the currency if it wishes to build on its recent gains.
For a token that launched at over $2000, Zcash has been very disappointing for a while now. When it entered the market, investors were very excited about it, and it shows in its value at that time. For some moments in October 2016, it was the most valuable cryptocurrency.
Whether it will ever reach those heights again, remain very questionable, but its current run is worth watching. Many believe that this price form is motivated by the crypto bull run. While this is true, Zcash is a late beneficiary in that run.
Several other cryptocurrencies have been enjoying the perks since late 2020, but it took the new year for Zcash to catch up with the trend. No one knows how long this will sustain, but one thing looks certain, Zcash stands to benefit a lot more if the bull run should continue.
Factors influencing Zcash Price
Volatility is a dominant feature of digital assets. However, this volatility doesn’t just happen; it is motivated by certain variables. Identifying and observing these variables will help in predicting the prices.
The factors could be external or internal. For Zcash, here the factors motivating its prices
Demand and Supply
Nothing affects any market, like demand and supply. For a digital asset like Zcash with limited supply, the effect is more visible. These two factors work hand in hand to determine the worth of Zcash.
However, demand and supply too are influenced by other factors. Thus, it can be seen as an overarching factor. It is important to study and pay attention to demand and supply, especially when you are investing.
When there are more people looking to buy than sell, the price will definitely go up and vice versa. Ironically, the higher the price goes, the more interested people are in buying, and the more people want to hold.
Investor Confidence and Social Buzz
The public or media attention on a crypto asset usually affects its price. An easy way of seeing this is with Dogecoin, which increased in value solely on the back of internet mentions and tweets.
The logical explanation for this is that the more people talking about it, the more people are interested. Cryptocurrencies have thrived on social buzz, which investors interest and confidence.
Zcash’s entry into the market represents a textbook example of this. The expectations and excitement were incredibly high. In the end, it influenced the price massively.
Halving is a phenomenon that applies to cryptocurrencies that are mined. It means that every four years, the reward for mining would be slashed by half. This is a way to control inflation and the total units in circulation.
The first halving for Zcash happened in November 2020. Generally, halving leads to an increase in price as the supply will decrease. This has happened with Bitcoin on multiple occasions.
With Zcash’s first halving, it also experienced something similar as the price increased from $61.50 to $76.39 between November 9 and 23.
Another factor that influences the price is the updates of the underlying technology for the cryptocurrency. It has been observed that even the mere announcement of future updates could drive the price up.
Closely related to social buzz is adoption. One of the factors that have continued to increase the price of Bitcoin is its adoption. As more investors, especially institutional ones, get involved, the price goes up.
This doesn’t just touch on the increase in demand but also the increased confidence that many investors will get from such adoption. Those who are not already invested too will want to get involved to avoid missing out.
Zcash: To invest or not to invest?
The decision to buy Zcash is a personal one that predictions and data will only help you with it. On a short-term projection, investing in Zcash looks tricky. This is because price predictions are not uniform.
While some believe it will increase, others think it is a bad short-term investment.
However, the opinions on long-term investment are quite uniform. Almost every prediction platform, including WalletInvestor, expects an increase in price in two to five years. The predictions are already fully explained above, and you can study them to make your decision.
If you choose to invest, there are lots of crypto exchange platforms that list Zcash.
Price predictions are a good place to start when investing, but it is important to know that the market can change anytime. The volatility of the market means it is important to stay up to date if you’re planning to invest.
In the end, it all boils down to taking calculated risks. You can study the forces that influence prices and study the market before making the final decision.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.