The privacy-focused cryptocurrency Zcash (ZEC) is experiencing a period of intense volatility after recording a drop of more than 25% in its value during the last month. Nevertheless, the Zcash network indicators suggest deep structural confidence, highlighting that the supply held in shielded addresses has surpassed 5 million units as of February 2026.
This divergent behavior occurs in a global risk-off environment, where internal factors such as the restructuring of the Electric Coin Company (ECC) team have weighed on the price. Although the asset is currently trading near $227, the on-chain activity reflects an unwavering commitment from users toward the network’s privacy infrastructure despite short-term market pressure.
Record mining security despite broad market pressure
A fundamental technical data point, which has caught the attention of analysts, is the increase in mining difficulty reaching all-time highs in early February. This increase in aggregate computational power strengthens the protocol’s security profile, demonstrating that competition among miners remains profitable for efficient industrial operations even during price drawdowns.
On the other hand, the consolidation of over 5 million ZEC in shielded addresses, representing nearly 30% of the circulating supply, validates the real-world adoption of its private features. While retail sentiment seems to falter in the face of price action, the usage data suggests organic and constant participation that transcends simple financial speculation.
What impact does the ECC and Bootstrap split have on the protocol’s future?
The recent split between the ECC team and the Bootstrap organization, motivated by governance disagreements, has introduced a layer of operational uncertainty that the market is still digesting. However, the protocol remains intact and functional, as Zcash’s decentralized nature allows multiple actors to continue its development independently and transparently across the ecosystem.
Furthermore, the profitability of hardware such as the Antminer Z15 Pro ensures that the network maintains a robust security profile against potential external attacks. Therefore, the cryptocurrency positions itself as a critical technological tool, especially in a context where figures like Ray Dalio warn about the loss of privacy against state digital currencies.
Finally, the market awaits the launch of new wallet solutions and scalability upgrades that could act as catalysts for a sustained recovery in the asset’s price. The combination of an increasingly private circulating supply and unwavering network security presents a scenario where technical fundamentals significantly outweigh the current volatility seen across the broader sector.
