Should you buy Zcash after its latest surge in value?
- Zcash’s trading volume increased by 31% in the last 24 hours.
- The price of the token surged to $243.84 following Silbert’s announcement.
- The token has the potential to climb to $250 by the end of December.
Zcash ZEC/USD is a privacy-oriented cryptocurrency with a decentralized blockchain that aims to provide users with a higher level of anonymity when it comes to conducting online transactions.
To accomplish this goal, Zcash uses a variant of zero-knowledge proofs known as zk-SNARK for its shielded transactions.
The $85 million ZEC purchase announcement as a catalyst for growth
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On November 22, we discussed how the planned Proof-of-Stake (PoS) switch would impact the price of the ZEC token.
On December 1, Barry Silbert made an announcement about an $85 million purchase of ZEC tokens, which led the price of the token to rise to $243.84.
This was roughly 376,106 tokens, with an average price of $226. Additionally, the main developer behind Zcash, Electric Coin Company, also announced that users would be able to stake a portion of their holdings into a dedicated ZEC smart contract.
This would, in turn, allow them to become validators on the blockchain network.
Should you buy Zcash (ZEC)?
On December 2, Zcash (ZEC) had a value of $219.19.
To get a better perspective as to what kind of value point this is for the token, we will go over its all-time high value as well as its performance in November.
The all-time high value of the ZEC token was on October 29, 2016, when the token reached a value of $3,191.93. This is a huge difference when it comes to its value on December 2, where the token is $2,972.74 lower in value.
In terms of November’s performance, its lowest point was on November 18, when the token fell to a value of $146.38.
However, its highest point of value was on November 25, when the token’s value increased to $302.79.
This gives us an indication that the token increased in value by 106% or by $156.41 throughout the span of November.
After that, the token saw another surge to $243.84 on December 1 before falling back down to $219.19 on December 2.
According to data from IntoTheBlock, ZEC saw $13.64 billion in transactions greater than $100,000 within the span of the last seven days.
With all of this in mind, we can see the ZEC token increase in value to $250 by the end of December, which makes it a solid purchase.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: