Key takeaways
- Zcash falls below $1,000 following sharp weekly losses
- Grayscale ETF faces reported $14.6 million withdrawals
- Faster NU7 blocks fail to prevent market selling
Zcash (ZEC) remained below $1,000 on November 12 as Grayscale's Zcash exchange-traded fund faced a reported $14.6 million withdrawal, adding to selling pressure despite the blockchain's recently completed network upgrade.
ZEC traded near $980 after falling more than 23% over seven days. The cryptocurrency touched approximately $951 during the latest downturn, extending a correction that has erased much of its recent privacy-coin rally.
The decline follows the November 6 activation of Network Upgrade 7 (NU7), which reduced Zcash's target block interval from 75 seconds to 25 seconds.
Grayscale Zcash ETF Faces Another $14.6M Withdrawal
According to third-party Zcash ETF flow data, Grayscale's ZCSH recorded an estimated $14.6 million in net outflows on November 11.
However, the tracker also flags the session as incomplete, so the figure should be treated as provisional rather than issuer-confirmed.
The reported withdrawal follows $2.2 million in outflows on November 9 and $11 million on November 5, suggesting institutional demand remains uneven.
The latest figures extend the broader altcoin ETF selloff, which has affected Solana, Avalanche and Hyperliquid investment products.
Despite recent redemptions, ZCSH reportedly maintains approximately $577 million in net assets and more than $207 million in cumulative net inflows.
The distinction matters because fund withdrawals do not necessarily translate into identical immediate spot-market sales.
Zcash's weakness also follows Grayscale's recent $1 million ecosystem initiative, which supports education and development rather than directly purchasing ZEC.
Zcash's NU7 Upgrade Cuts Block Times by Two-Thirds
The selloff comes despite a significant improvement to Zcash's underlying blockchain.
The Zcash Foundation confirmed that NU7 reduces target block spacing from 75 seconds to 25 seconds, potentially shortening payment confirmation times.
The upgrade activated at block 3,543,405 on November 6, introducing the Network Sustainability Mechanism alongside changes to transaction validation.
Importantly, faster blocks do not increase daily ZEC issuance. Block subsidies were reduced proportionally to preserve the existing monetary schedule.
ZEC had previously rallied ahead of NU7, reflecting optimism surrounding the protocol improvements.
However, successful network development does not guarantee stronger short-term token demand.
Can Zcash Recover Above $1,000?
Derivatives markets indicate that leveraged trading has amplified the recent correction.
Approximately $17.9 million in ZEC futures positions were liquidated over 24 hours, including nearly $12.8 million in leveraged longs. Futures open interest stood around $2.1 billion.
The latest liquidations follow an earlier Zcash leverage warning, which highlighted the risks of speculative positioning following September's rally.
For now, $950 represents an immediate downside reference, followed by $900 if selling accelerates.
A sustained recovery above $1,000 could improve sentiment, while reclaiming $1,050 would provide stronger evidence of stabilization.
Grayscale's earlier Zcash ETF expansion demonstrated how regulated investment products can expand market access.
