Zcash Price Drops Below $1,000 as ETF Loses $14.6M Despite Faster Blockchain Upgrade - Coinpaper
Zcash (ZEC) fell below $1,000 on November 12 as Grayscale's Zcash ETF faced a reported $14.6 million withdrawal, despite the blockchain's recent NU7 upgrade that reduced block times from 75 to 25 seconds.
ZEC traded near $980 after falling more than 23% over seven days, touching approximately $951 during the latest downturn. This correction has erased much of Zcash's recent privacy-coin rally, which had been fueled by anticipation of the network upgrade.
The decline follows the November 6 activation of Network Upgrade 7 (NU7), which reduced Zcash's target block interval from 75 seconds to 25 seconds. Despite this significant technical improvement, the market has reacted negatively to continued outflows from investment products.
ETF Outflows Continue
According to third-party Zcash ETF flow data, Grayscale's ZCSH recorded an estimated $14.6 million in net outflows on November 11. This figure is provisional as the session was incomplete, but it follows $2.2 million in outflows on November 9 and $11 million on November 5.
The reported withdrawals extend the broader altcoin ETF selloff affecting Solana, Avalanche and Hyperliquid investment products. Despite these redemptions, ZCSH reportedly maintains approximately $577 million in net assets and more than $207 million in cumulative net inflows since its inception.
Network Upgrade Impact
The Zcash Foundation confirmed that NU7 reduces target block spacing from 75 seconds to 25 seconds, potentially shortening payment confirmation times. The upgrade activated at block 3,543,405 on November 6, introducing the Network Sustainability Mechanism alongside changes to transaction validation.
Importantly, faster blocks do not increase daily ZEC issuance. Block subsidies were reduced proportionally to preserve the existing monetary schedule. ZEC had previously rallied ahead of NU7, reflecting optimism surrounding these protocol improvements.
Market Sentiment
Derivatives markets indicate that leveraged trading has amplified the recent correction. Approximately $17.9 million in ZEC futures positions were liquidated over 24 hours, including nearly $12.8 million in leveraged longs. Futures open interest stood around $2.1 billion.
For now, $950 represents an immediate downside reference, followed by $900 if selling accelerates. A sustained recovery above $1,000 could improve sentiment, while reclaiming $1,050 would provide stronger evidence of stabilization. Grayscale's earlier Zcash ETF expansion demonstrated how regulated investment products can expand market access, though current outflows suggest institutional demand remains uneven.
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