Social chatter about Zcash (ZEC) surged to six times its usual August level one day before the token's price peaked, then faded back to baseline right as Grayscale's spot ZEC ETF began trading. The token has since pulled back about 10% from its recent high.
Social media mentions of Zcash (ZEC) had already returned to their usual baseline by the time Grayscale's spot ETF started trading, even though chatter about the token reached six times its August average just days earlier. Data from Santiment suggests the crowd's attention arrived ahead of the market's turning point.
Attention Peaked Before the Price Top
ZEC climbed from about $509 on August 18 to roughly $878 on August 23, a gain of about 72%. Social mentions reached 232 on August 22, around six times the token's usual August baseline.
However, that burst of attention did not hold. According to Santiment, social activity peaked one day before ZEC's price high, suggesting much of the crowd interest had already arrived before the market topped out.
ETF Debut Meets a Quiet Crowd
Grayscale converted its 2017 Zcash trust into a spot ETF, which began trading on NYSE Arca on August 25. By that launch day, mentions of ZEC had already returned to their baseline level.
Since touching about $878, the token has pulled back to roughly $789, a decline of around 10% from its recent peak.
Grayscale Sees a Bitcoin Challenger
Grayscale Research believes ZEC could emerge as a serious challenger to Bitcoin's network effects as demand for financial privacy grows, according to a report by Head of Research Zach Pandl. The firm said Bitcoin remains dominant among digital currencies, and while alternatives such as Litecoin have emerged, none has seriously challenged its position.
The privacy coin has been one of the best-performing assets this year and has managed to attract significant institutional capital.
Source: CryptoPotato
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