Zcash price recovers $400, what is the driving factor now?

Source: CritpoTendencia Original Title: Zcash Price Recovers $400, What Is the Current Driving Factor? Original Link: After long days of correction and drama for investors, the price of Zcash (ZEC) seems to be regaining its bullish streak. According to charts from a cryptocurrency data portal, the coin has experienced a +11.53% performance in 24 hours, while the weekly chart shows a +29.08%. This allowed its price to break out of the local bottom of $381 until now when writing this note.

This recovery has sparked a renewed sense of optimism among investors of this coin, which was the star of October-November by challenging the downward trend. However, in recent days, the token saw a strong take profit movement from investors, leading to a sharp price plunge.

Following the recent rebound, market participants are wondering how high the coin could go and how sustainable this new streak is. To understand that, it is essential to identify the catalyst behind the momentum. First and foremost, the proposal from the team behind the network, which constitutes a dynamic fee model to protect users, is evident.

This development complements the fact that the coin can now be widely traded on some traditional exchanges. Recently, some global trading platforms listed ZEC again after several years of exclusion due to fears of retaliation by U.S. regulators.

This last point could be key to triggering quick reactions in Zcash’s price. Presence on exchanges significantly shortens the adoption process among investors.

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Some elements to consider regarding Zcash’s price

Although much of ZEC’s price momentum has speculative components, there is also a strong organic presence. This is reflected in the fact that the coin’s positive performance extends over a long period. For example, year-over-year, the token has increased in price by more than +550%.

This increase in privacy coin adoption is closely related to regulations. Many traditional crypto actors and whales do not feel secure in coins from transparent networks. This has motivated them to shift their funds into coins like Zcash, Dash, and XMR, whose features allow privacy protection.

Basically, the more robust the privacy of these tokens, the more attention they could attract from large wallets. By inference, it can be said that these whales fear that regulations could become an open window for state surveillance and banking entities.

Against this backdrop, the Zcash team announced the aforementioned fee model aimed at protecting user privacy. This was positively received by the market, at least for now, as evidenced by the recent rise in Zcash’s price.

The proposal aims to bring order to the problematic fee system of that blockchain. It will help keep pace with high demand and current market conditions. Therefore, abandoning the static fee model in favor of a dynamic structure is recommended.

Among the advantages, this would significantly reduce spam transactions that considerably slow down the network.