Zcash has experienced a dramatic surge this year, climbing 1,077% over the past 12 months and reaching a recent high near $1,600 before correcting to $1,300. Samson Mow, head of digital asset infrastructure company JAN3 and prominent Bitcoin advocate, has cast doubt on whether Zcash’s rapid ascent is sustainable in today’s market.
Bitcoin maximalist criticism of Zcash fundamentals
Mow argued that Zcash’s current valuation, which surpassed $22 billion after its parabolic growth, lacks the necessary speculative interest to maintain a place among the top cryptocurrencies. He highlighted multiple long-standing concerns voiced by Bitcoin maximalists regarding ZEC. Among these, critics point to Zcash’s historical developer tax, high fund management fees such as the 2.5% at Grayscale, and centralized governance structure. They also reference previous staff turnover at Electric Coin Company, the main entity behind Zcash’s development.
Mow positioned these criticisms within the context of his bullish forecast for Bitcoin. Relying on JAN3’s internal OMEGA60 model along with algorithms like the Power Law, he foresees Bitcoin reaching $1 million as early as 2028 to 2033. He suggested that sovereign adoption could drive BTC to this milestone even faster than such models predict.
Based on this outlook, Mow and other maximalists believe channeling liquidity to altcoins such as Zcash is a less strategic allocation, especially when compared to staying invested in Bitcoin.
Liquidity moving into altcoins is often seen by maximalists as a missed opportunity for Bitcoin, especially with ambitious targets such as $1 million within reach in the coming decade.
Mini dictionary: JAN3 is a digital infrastructure company led by Samson Mow, known for supporting Bitcoin adoption at a sovereign level and providing related tech solutions for governments and institutions.
Zcash community sees rapid gains as justified
Contrary to such skepticism, Zcash proponents attribute the recent surge to significant upgrades and infrastructure improvements. Notably, developers introduced the NU7 upgrade on Zcash’s testnet in early October, a move designed to triple block generation speed. These developments have been cited as evidence that ZEC’s market gains are built on concrete progress rather than speculation alone.
Additional backing for Zcash’s momentum came from new liquidity pools established on THORChain and a substantial $306 million inflow to Grayscale’s spot ETF for ZEC. However, Grayscale’s fund also recorded its first significant outflow this week, with $93 million withdrawn.
Zcash’s path is now at a pivotal juncture, with optimism about technological upgrades meeting increased regulatory scrutiny. The coming weeks could determine if ZEC can maintain its position within the $1,280 to $1,330 range, or if the recent correction will deepen, validating concerns from Bitcoin maximalists.
| Metric | Recent Value |
|---|---|
| 12-month ZEC gain | 1,077% |
| Recent peak price | $1,600 |
| Latest correction | $1,300 |
| Grayscale ETF inflow | $306 million |
| First weekly outflow | $93 million |
Developers expect the NU7 upgrade to increase block generation speed on Zcash’s testnet threefold, adding to confidence about the coin’s underlying improvements during its 12-month rally.
