Why is ZEC crypto suddenly becoming popular?

November 24, 2021 09:40 PM AEDT | By Raza Naqvi

Why is ZEC crypto suddenly becoming popular? — Image source: © Eamesbot/Megapixl.com

Why is ZEC crypto gaining investors' attention?

Recently, the ECC announced that Zcash is set to transition to a proof-of-stake concept in the next three years. In addition, ECC plans to launch an official wallet to boost the network's cross-chain interoperability.

ZEC Crypto

Due to this reason, the ZEC crypto could be gaining investors' attention. The Zcash network is currently based on the proof-of-work concept known as Equihash. Under this concept, the crypto miners compete to find new blocks on the network's blockchain.

Now, the network is aiming to shift to the proof-of-stake concept to increase the utility of ZEC crypto, which includes yielding tokens through staking. Notably, this concept could also lead Zcash's blockchain towards governance mechanisms.

Bottom line

As crypto-mining operations are often criticized for a negative impact on the environment, the Zcash network is looking to address climate change issues. By shifting to the proof-of-stake concept, Zcash claims that its blockchain will contribute to the reduction of the energy footprint.

Ever since the announcement, ZEC crypto is witnessing increased trading activity and its one-day volume has soared 59 per cent to $ 1.3 billion, according to CoinMarketCap data.

ZEC crypto has a total supply of 21 million tokens and its circulating supply has reached 11.8 million ZEC tokens.

On March 13, 2020, the ZEC crypto had dropped to an all-time low of US$ 19.75 apiece, and at the time of writing, it was up 1182.4 per cent, as per the data on CoinGecko.

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