Zcash Falls Below $1000 for the First Time Since September 2023

Cryptocurrency Zcash (ZEC) fell below $1,000 for the first time since September on November 11, 2026, reaching a two-month low of $962.85. According to CoinGecko, by 12:20 UTC (15:20 MSK), the asset's value had decreased by 13.5% over the day and 24.5% over seven days. This was the most significant daily drop among the top 100 cryptocurrencies by market capitalization at the time of observation.

The decline in Zcash occurred amid a broader correction in the cryptocurrency market, which intensified following the release of inflation data in the US. In October, the consumer price index rose by 0.4% compared to the previous month, exceeding economists' forecast of 0.3%. The statistics heightened expectations of a tightening of monetary policy by the US Federal Reserve (Fed), putting pressure on risky assets. Over the week, Bitcoin (BTC) lost about 5.8%, and Ethereum (ETH) – 11.6%.

Zcash led the decline among privacy cryptocurrencies

Zcash remains the largest cryptocurrency by market capitalization in the Privacy Coins category, tracked by CoinGecko. At the time of preparing the initial data, ZEC accounted for about 60% of the total segment value, estimated at approximately $28 billion. Over the day, its total market capitalization decreased by about 7%, reflecting pressure not only on Zcash but also on other coins focused on confidential transactions.

Previously, ZEC was one of the growth leaders in this segment. Over the 30 days up to September 7, the cryptocurrency gained about 138%, accompanied by increased investor attention to private payment technologies. Zcash allows for secure transactions where the sender and receiver addresses, as well as the transfer amount, are hidden from public view. At the same time, the network supports regular transparent operations.

NU7 update did not stop the decline in ZEC price

On November 6, the NU7 update was activated on the Zcash network, aimed at increasing transaction processing speed and changing blockchain security funding mechanisms. It reduced the target block formation interval from 75 to 25 seconds while maintaining the previous total coin issuance schedule. Shortly before the update, ZEC was trading above $1,370, but the subsequent decline led to the loss of the psychologically important $1,000 level.

Simultaneously, NU7 discontinued support for the old transaction format used to transfer funds from the original Sprout shielded pool. As a result, about 12,224 ZEC remaining in this pool became inaccessible for spending under the current network rules. These coins were not destroyed, but restoring access will require a separate protocol change, the adoption of which is not yet guaranteed.

The update itself does not explain the reasons for the recent price drop. The market dynamics of ZEC also depend on the overall demand for cryptocurrencies, Fed rate expectations, and trading activity. Therefore, the coincidence of the price decline with technical changes in the network does not allow for establishing a direct causal link between these events.

Grayscale to allocate $1 million to support the Zcash ecosystem

On November 10, investment company Grayscale announced its intention to allocate $1 million to support organizations and projects developing Zcash. Of this amount, $400,000 has already been distributed among four initiatives: Zcash Foundation, Pretty Good Policy for Zcash, Shielded Labs, and Project Tachyon. Each organization received a grant of $100,000 for research, development, and other areas of ecosystem development.

In addition, Grayscale intends to direct income from the management fee of the ZCSH fund to network development, educational programs, and marketing initiatives for up to one year. The commitment is voluntary and may be changed by the company. Simultaneously, Grayscale launched the Zcash Invest information platform and an advertising campaign dedicated to privacy cryptocurrencies.

The Grayscale Zcash ETF (ZCSH) began trading on NYSE Arca on August 25, 2026, following the conversion of the previously existing Zcash Trust. However, in recent months, the fund has faced capital outflows: according to SoSoValue, in October, the net outflow was about $46 million, and from the beginning of November to November 9 inclusive – approximately $15 million. These figures reflect the difference between inflows and redemptions of shares, not solely changes in the market value of the fund's assets.

Thus, the drop of Zcash below $1,000 occurred despite the technical development of the network and the announcement of new grants from Grayscale. The subsequent dynamics of the cryptocurrency will depend on the overall market situation, demand for confidential digital assets, and changes in investment flows. The allocation of funds for ecosystem development alone does not guarantee the recovery of the ZEC price.