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Zcash rallies as dynamic fee proposal tightens circulating supply
Zcash (ZEC) surged roughly 13% to $460, outperforming a largely sideways crypto market as market capitalization and 24-hour trading volume spiked. The move followed a high-profile proposal to shift Zcash’s current fixed fee structure to a dynamic fee market, while on-chain activity showed significant accumulation by large holders and corporate treasuries.
Why the price moved: dynamic fees and supply compression
Developers and Shielded Labs have outlined a plan to replace static transaction fees with a dynamic fee market aimed at lowering costs and improving throughput during congestion. That upgrade narrative boosted investor confidence in ZEC’s utility as a privacy coin and payments layer. At the same time, new bids from Cypherpunk Technologies and transfers to margin platforms tightened liquid supply, a common catalyst for price appreciation.
On-chain flows: whale accumulation and Cypherpunk’s ZEC treasury
Blockchain analytics revealed that one or more large wallets increased ZEC positions and moved coins to Hyperliquid to open long exposure. Such accumulation removes coins from short-term circulation and can amplify bullish momentum. Cypherpunk Technologies also expanded its ZEC holdings and confirmed appointing Zcash founder Zooko Wilcox as an advisor, signaling institutional and developer alignment that markets typically interpret as a positive catalyst.
Trading activity and market structure
Trading volume rose noticeably during the 24-hour rally, suggesting participation from both retail and institutional traders. Technical analysis shows ZEC testing a multi-touch resistance zone near $420 — a level that previously capped rallies. Crypto Pulse’s chart work highlights a symmetrical triangle pattern; a decisive breakout above resistance could target higher multi-cycle levels, while failure to breach might prompt a pullback to nearby supports.
What this means for traders and investors
For traders, a breakout above the key resistance may offer momentum-based entries, but risk management remains essential given ZEC’s volatility as a privacy-focused digital asset. Investors should monitor the progress of the dynamic fee market proposal, on-chain whale behavior, and Cypherpunk’s treasury activity — all fundamental and on-chain signals that can influence supply and price discovery.
Outlook
The combination of protocol-level upgrades, concentrated on-chain accumulation, and renewed institutional interest has tightened available supply and helped decouple ZEC’s price action from a flat broader market. Short-term traders should watch volume-confirmed breakouts and support retests; longer-term holders will want to follow development timelines for the dynamic fee market and any additional treasury builds by Cypherpunk or other major holders.
Source: crypto
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