Zcash has seen a noticeable surge recently in the mining sector. Although the daily rewards for miners are still lower than those of Bitcoin, the return per mining machine and per unit of electricity is higher, which has led to a significant increase in mining activities across the network this year. Meanwhile, ZEC has entered a period of high volatility after rising to $1300, and the market has begun to re-evaluate the support that improved miner earnings can provide for prices.
Mining rewards are higher than some indicators.
According to Grayscale Research data, the current daily reward for miners of Zcash is approximately 2 million US dollars, which is lower than the level of about 35 million US dollars for Bitcoin. However, in terms of efficiency, the mining economics of Zcash are stronger.
- Calculated per individual mining machine, the miner's reward is approximately twice that of Bitcoin.
- Calculated per megawatt-hour, the miner's reward is about 4 times that of Bitcoin.
- Since the beginning of this year, Zcash mining activities have grown by more than 2.5 times.
This means that, although the overall size of Zcash is still smaller than that of Bitcoin, its network's short-term attractiveness is increasing for some miners.
Demand recovery drives up ZEC
The article mentions that investors' attention to ZEC has recently increased, and the buying activity has driven the price up rapidly. ZEC once reached $1300, indicating that funds are re-entering this asset.
Improvements in mining returns usually increase market attention to network activity and supply-demand structures. For Zcash, the increase in mining activities, which coincides with investor buying, is one of the important factors behind the recent price increases.
$1,500 and $900 are in the spotlight
After a rapid rise, ZEC is currently in a phase of significant volatility. If the buying momentum continues, the next target level that the market will focus on is the integer mark of $1500.
However, the article also points out that if selling pressure increases, ZEC could fall back to $900 or even lower levels. The core variable in the current market remains whether demand can continue to keep up, as well as whether there will be a stronger impulse to take profits after the recent gains.
