Key facts
- Zcash fell 11% in 24 hours, reaching a $18.5 billion market cap.
- Increased leverage and liquidation of long positions amplified losses.
- Concerns about AI's ability to break encryption also pressured the price.
- Zcash is up 460% from its March lows.
- Zcash aims to be quantum-proof and AI-proof by January.
Privacy cryptocurrency Zcash has fallen 11% over the past 24 hours, reaching a market capitalization of $18.5 billion. Luke Nolan, senior researcher at CoinShares, attributed the drop to a build-up of leverage following recent price surges, which amplified losses when traders were forced to liquidate positions. Concerns that artificial intelligence could break cryptography faster than quantum computers have also contributed to the decline.
Nolan noted that Zcash is still up 460% from its March lows, and in a volatile crypto market, significant gainers often experience pullbacks. Over the past 24 hours, $17.9 million worth of Zcash long positions were liquidated, according to CoinGlass data.
Industry-wide concerns about AI's impact on encryption have also surfaced. Ethereum co-founder Vitalik Buterin and Ethereum Foundation researcher Justin Drake have warned about the need for "bunker mode" as AI advancements could compromise current encryption methods. Ryan Zurrer, founder of Dialectic, highlighted that OpenAI's math breakthroughs have raised concerns about the future of cryptography, particularly for complex privacy protocols like Zcash.
Zcash has been actively working on quantum-proofing its network, with developer Zakura expecting the network to be quantum-resistant and reasonably AI-proofed by January. This roadmap has been cited as a key catalyst for its recent rally, reflecting ongoing market focus on privacy solutions.