The Biggest Loser of Crypto Market has Lost 100% of its All-Time High Value
- No Sign of Highs But Hitting a New All-Time Low
- Surging Hash Rate Further Squashing the Profitability
- Hard Fork and Halving Coming in 2020
To date, this year, we saw cryptocurrencies like Chainlink surging a whopping 650% and Bitfinex LEO token soaring 1,150%. We also witnessed top cryptos like Stellar (XLM) losing 50% of its value, IOTA 43.80%, and XRP 39.16%.
Crypto market had its share of top gainers and losers in 2019 but no none of those can beat the privacy-oriented Zcash. This cryptocurrency has been constantly falling since it was launched in late October 2016.
Created to fix the problem of privacy in Bitcoin, just like the world’s leading cryptocurrency Zcash has a fixed supply of 21 million units.
To offer privacy, Zcash uses zero-knowledge proof called zk-SNARKS. These coins are either in a transaction pool or shielded pool — the majority are in a transparent pool and only 5 to 7% of the Zcash coins are in shielded pools even now. Private transactions, however, do have the option of “selective disclosure.”
No Sign of Highs But Hitting a New All-Time Low
The 32nd largest cryptocurrency with a market cap of $22.7 million is currently trading at $27.67, as per Coincodex. Just a few days back, on Nov. 25, it went to its all-time low at $25.45.
Currently, ZEC is down 100% down from it's all-time high of $5,941 on October 29, 2016, which was the next day after its launch. Ever since then, ZEC has been crashing. Donalt said,
“If you invested 10 000 BTC into ZEC at the open of the 2nd trading day (God forbid) you'd be left with less than two today. That's how crazy this drop is.”
Kind of crazy to see what ZEC is doing in terms of price discovery.
For an early investor, there is no price floor.
As a trader, these things go further up and further down than you'd ever expect.
Eye-opening, honestly. pic.twitter.com/EBEmwWuVXu
— DonAlt (@CryptoDonAlt) December 1, 2019
Surging Hash Rate Further Squashing the Profitability
While the price has been constantly falling, the network’s hash rate has been on the increase. The hash rate started 2019 at 2.83 GigaHash/s only to explode in April and to make an all-time high at 5.5 GigaHash/s on October 18, seeing a spike of 96%. Since then, it has declined to 4.17 GigaHash/s.
- Source: Bitinfocharts
However, it is not good for the digital currency because the combination of falling prices and rising hash rate negatively impacts the profitability of miners.
Recently, the miners collectively earned $1 billion in revenue including founders’ rewards.
The daily transactions processed on the network meanwhile are stuck below 4k after topping at $17.2k during the bull run in December 2017. The daily active addresses remain muted as well.
Hard Fork and Halving Coming in 2020
Zcash has its Blossom hard fork coming in December which will bring shorter block times.
The ZEC protocol had two upgrades in 2018, Overwinter in June and Sapling in October. Both the upgrades enhanced the efficiency of transactions and scalability for shielded addresses.
Future protocol upgrades for the digital currency involve reintroducing a developer fund, that is set to expire in 2020 and privacy functionality and scaling mechanism. The next year will also mark its very first reward halving that will occur at block 840,000 and will cut down the rewards from 12.5 ZEC to 6.25 coins.