Zcash (ZEC), a cryptocurrency created with privacy in mind, was recently added to Coinbase Pro, the more sophisticated version of America’s most popular fiat-to-crypto exchange (AKA, regular ol’ Coinbase).
Because of how it’s designed, Zcash holders can make transactions that are more private than Bitcoin’s, satisfying the need of many crypto purists who would prefer extra layers of privacy between outsiders and their wallet activity. It’s attracted tinfoil hat conspiracy theorists and shrewd businessmen alike, but the majority of (recent) Zcash investors are simply trying to buy-in before the next crypto boom – regardless of what features it may have.
Coinbase’s decision to support Zcash via Coinbase Pro should certainly satisfy speculators, especially considering that major exchange listings often send coin prices skyrocketing. However, due to the November crypto “flash crash”, Zcash investors haven’t really seen the gains they may have been expecting.
Zcash prices jumped 15% over the course of the last week (in response to the Coinbase Pro listing), but it’s a far cry away from some of the meteoric rises that crypto speculators are used to post-listing. It’s a little disappointing, yes, but it’s not the end of the world for Zcash holders, who should instead be excited about the coin’s immense promise.
As you can see in the chart above, Zcash is trading near its all-time low, right along a line of key support. While this may seem like cause for concern, the fact is that Zcash has fared very well during this last crash.
Bitcoin plunged below its yearly low by a wide margin, dragging thousands of altcoins down with it – in both terms of dollars and BTC. Digital currencies made new lows all across the market, but Zcash managed to stay afloat.
With Bitcoin looking woefully oversold on the Stochastics and MACD (both of which are at rock-bottom), a recovery in 2019 now looks all but inevitable for crypto’s most popular coin.
When Bitcoin eventually does make its comeback, non-crypto investors will once again be looking to enter the space for the very first time. A large number of them will convert their dollars to Bitcoin through Coinbase, and eventually be exposed to the small handful of altcoins supported on Coinbase Pro (which now includes Zcash).
Returning investors, those who “got out” in early 2017, will also re-enter the market via Coinbase Pro – the preferred choice of savvy traders. With a brand spankin’ new ZEC/BTC pairing on their dashboard, I would be surprised if trading volume doesn’t spike as a result.
With this move, Zcash has now entered the “big leagues” of crypto. It’s far less volatile than most coins out there, all things considered, and presents an immense buying opportunity in the current market conditions.
Zcash, which now sits at number 19 in the market cap rankings, will likely climb the charts from here, and a burst to the top 10 shouldn’t come as a shock in the event of a Bitcoin rally. Now that it’s been added to the ranks of the crypto elite, this once popular coin has been given a new lease on life.
Don’t get me wrong, though – an exchange listing certainly won’t make an undesirable coin suddenly “in vogue” – but for digital currencies that need a little bump to take the next step, it can truly be a game changer. That’s exactly what the doctor ordered for Zcash – a coin with huge potential as a crypto recovery lingers on the horizon.