Zcash ZEC price drops as dormant wallets move coins to exchanges

Zcash ZEC price movements have come under scrutiny as the asset fell below $1,000 amid a surge in selling pressure. Market data from CoinMarketCap indicated that ZEC traded at approximately $965 on Nov. 12, following a 24-hour low near $953. This downturn has highlighted potential vulnerabilities in the market structure of Zcash, with research revealing significant selling activity across derivatives platforms and fresh deposits from previously inactive wallets.

Zcash fell below $1,000 as leveraged traders abandoned bullish positions and selling pressure intensified.

Market activity and Zcash ZEC price analysis

A detailed market investigation by Kairos Research identified the rapid closure of a 12,500 ZEC long position on Hyperliquid as a key catalyst for the selloff. This position was closed within two seconds on Nov. 10. Following this, ZEC dropped from $1,193 to $1,001 as traders sold a net 160,000 ZEC across four perpetual futures exchanges. Binance led the volume with 74,000 ZEC, followed by OKX, Hyperliquid, and Bybit. Kairos Research noted that the selling was primarily driven by the unwinding of existing long positions rather than forced liquidations.

Beyond derivatives, researchers observed notable activity in spot markets and exchange deposits. By Nov. 11, Coinbase had received 16,300 ZEC, including 9,800 ZEC from wallets that had been inactive since 2025. These wallets still hold approximately 19,000 ZEC, while Binance also received significant deposits, raising the possibility of further spot selling. Meanwhile, the Grayscale Zcash ETF, ZCSH, has faced two consecutive weeks of net withdrawals, recording $17 million in outflows this week. However, investigators found no evidence that ETF redemptions triggered the initial selloff on Nov. 10.

Despite the current volatility, Grayscale maintains a positive outlook on the asset, citing growth in the monthly active developer population and the increasing importance of financial privacy. The firm suggests that as artificial intelligence improves the ability to analyze public blockchain transactions, the privacy features of Zcash may become more valuable to users.

Why it matters

The decline in ZEC value reflects a shift in market sentiment among leveraged traders and the potential for increased supply on exchanges. This volatility impacts investors tracking the asset's performance and highlights the influence of dormant wallet activity on market liquidity.

For those interested in financial privacy, the ongoing development of the network remains a central theme. Grayscale continues to advocate for the value of privacy in digital money, noting that a robust developer base could enhance network security and utility in the long term.