Zcash Closes On $1,400 After Halving Vote
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Written by
Simonas Brazionis - Updated 2026-09-18 07:21:34
Zcash (ZEC) recently surged to $1,388, with Zcash Closes On $1,400 after the release of the NU7 sentiment poll results on Sunday. Coinholders overwhelmingly voted to maintain Bitcoin-style halvings, with 98.9% of 2.4 million ZEC cast, representing 66% of the eligible pool.
The privacy coin has experienced a significant increase in value, tripling since July's Ironwood upgrade and rising over 2,500% in the past year. This growth also coincided with the introduction of a Grayscale ETF, providing new institutional avenues to Zcash.
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Zcash Market Performance and Privacy's Value
Zcash surged to $1,388, with ZEC trading at $1,368, marking a 10.9% daily increase and 168% over 30 days. According to CoinGecko data, this positions ZEC as the ninth-largest asset by market capitalization at $22.9 billion.
A senior researcher at HashKey indicated that Zcash's ascent in rankings suggests a redefinition of privacy's market value, with Zcash leading this trend. A core contributor at privacy network Logos emphasized that privacy prevents others from gaining knowledge that could make one a target.
NU7 Upgrade Coinholder Vote Results
Five questions concerning the NU7 upgrade were put to a coinholder vote, with results published on Sunday and a 66% turnout. Eligibility was based on spendable shielded ZEC held in the Ironwood pool at block 3,459,350 on August 24, with a one-coin-one-vote system.
Ballots were encrypted and fragmented into 16 unlinkable pieces to ensure anonymous counting. Holders overwhelmingly voted to retain Bitcoin-style halvings, chose faster 25-second blocks, opted for immediate deprecation of the legacy Sprout pool, and decided to limit the scope of the upgrade to what could be ready by September 30.
One issue that prompted discussion was the timing for the network sustainability mechanism to begin recycling fees back to miners. Coinholders selected February 2031 with 96.6% of the vote, while advisory panels had favored an earlier implementation. Shielded Labs, Project Tachyon, ZODL, the Zcash Foundation, and Valar Group have since aligned on the February 2031 date, viewing it as the most conservative interpretation of the results.
Impact of Grayscale ETF and Privacy Narrative Shift
The significant increase in ZEC's value over the past year was partially attributed to the launch of Grayscale's ETF, which provided institutions with a new avenue to Zcash. A senior researcher noted that privacy coins have gained attention since the fund's August launch, which helped alleviate regulatory concerns and coincided with a shift in the sector's narrative.
The focus has transitioned from pure anonymity to financial privacy and confidentiality, a distinction highlighted by the decreasing cost of identifying address behaviors, counterparties, and asset changes due to AI. The chief executive of Aztec Labs stated that there is a growing recognition of the need for on-chain privacy, citing Zcash's recent actions, including addressing a critical bug, implementing post-quantum upgrades, and the token's tripling in value.
Ironwood Upgrade and Security Enhancements
Zcash’s Ironwood upgrade was activated in July after a four-year-old flaw was discovered that could have allowed the creation of counterfeit ZEC. This disclosure led to a 38% price drop in the token's value.
The upgrade was designed to quarantine any counterfeit coins in the retired pool and incorporated quantum-resistant transaction records, enhancing the security and integrity of the Zcash network.
