Zcash Shielded Pool Surpasses 4.5 Million — What Does It Mean for ZEC’s Price?
Zcash's shielded pool exceeding 4.5 million ZEC signals strong user confidence and potential upward price pressure due to reduced circulating supply.Summary
The Zcash (ZEC) shielded pool recently surpassed 4.5 million ZEC, a significant milestone indicating growing user adoption of its privacy features. This growth occurred rapidly, with about 1 million ZEC moved into shielded pools within three weeks, even as ZEC's price surged fivefold. Shielding involves moving funds from transparent (t-addresses) to shielded addresses (z-addresses) using zk-SNARKs, hiding transaction details. Industry figures, like Electric Coin Co. CEO Josh Swihart, suggest that users who shield their coins tend to hold them rather than sell, contrasting with typical speculative behavior. This reduction in actively circulating supply due to shielding (currently about 27.5% of the 16.34 million total supply) is interpreted as adding upward pressure on ZEC's price. Developers view this as genuine adoption of privacy technology rather than mere speculation, with some analysts predicting significant future price increases for ZEC.
(Source：BeInCrypto)