Why Is Zcash (ZEC) Price Falling? The Answer Isn’t the Broader Market

The slide came alongside Zcash ETF outflows, even as Grayscale research points to a growing developer base. US spot Zcash ETFs lost $14.61 million on November 11, their largest daily outflow since October 15.

Money has left the funds on six of the last nine trading days. As a result, November net outflows stand at $29.78 million. Net assets have also dropped to $562.16 million, the lowest since September 4.

Zcash Sinks Faster Than Bitcoin

The 25.22% weekly drop in the Zcash price is roughly three times Bitcoin's 8.49% decline. Ethereum lost 15.45%, about 10 percentage points less than ZEC. In contrast, Monero, another large privacy coin, slipped 10.41%.

That smaller decline points to pressure concentrated on Zcash itself. Grayscale's latest research, published November 10, tracks a different measure of the network: the number of developers working on it.

Developer Count Keeps Climbing

According to Grayscale's research, Zcash's monthly active developer count has roughly doubled in two years. The wider crypto developer pool shrank over the same period. About 70% of Zcash's active developers have over a year of crypto experience, against 58% industry-wide.

The firm argued this momentum could eventually lift ZEC's valuation. So far, though, the ZEC price has moved the opposite way. In the near term, traders are watching whether ZEC can recover the $1,000 level it just lost.

Can Zcash Win Back $1,000?

Analyst Daan Crypto Trades said ZEC has kept sliding since losing the $1,000 area. He said a wick into the $800-$900 zone would have him looking for longs, with a target of a relief bounce toward $950 to $1,000.

A daily close above $1,000 would put ZEC back over that lost level. The next level sits near $1,100, the bottom of its October range. ETF flows are the other signal to watch, as a return to inflows would show fund investors stepping back in.