Zcash fell nearly 15% on Wednesday amid a broader sell-off in privacy coins, dropping below $1,000 for the first time since September. The slide came a day after Grayscale pledged $1 million to the Zcash ecosystem.
Zcash fell to a two-month low of $962.85 on Wednesday, a day after Grayscale pledged $1 million to nonprofits and projects supporting the Zcash network. As of 12:20 pm UTC, its 13.5% drop led 24-hour losses among the 100 largest cryptocurrencies by market capitalization.
Zcash leads a wider crypto sell-off
Zcash was also down 24.5% over seven days. Over the same period, according to CoinGecko, Bitcoin (BTC) lost 5.8% and Ether (ETH) lost 11.6%.
Crypto prices fell further on Tuesday after US consumer prices rose 0.4% in October from the previous month, above economists' 0.3% forecast.
Privacy coins retreat after this year's rally
Zcash lets users send shielded payments that keep sender and recipient addresses and transaction amounts out of public view. It helped drive this year's rally in privacy coins, gaining 138% in the 30 days to Sept. 7.
Zcash remains the largest privacy coin by market value, accounting for about 60% of the $28 billion category CoinGecko tracks. The category's combined market value fell about 7% over 24 hours.
NU7 upgrade and ETF outflows
ZEC traded above $1,370 as recently as Friday, when Zcash activated its NU7 upgrade. The upgrade cut the target time between blocks from 75 seconds to 25 to speed up transaction confirmations, and it made about 12,224 ZEC held in the network's original privacy pool unspendable.
Grayscale converted its Zcash Trust into a US spot exchange-traded fund (ETF) that began trading on NYSE Arca on Aug. 25. The fund recorded about $15 million in net outflows in November through Monday, following about $46 million in October, according to SoSoValue.
Source: Cointelegraph
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