Beyond the Hype: The ZEC Supply Squeeze Explained ⚙️
ZEC's rally is fueled by narrative, but it's magnified by a unique technical catalyst: a potential supply squeeze.
Here’s what’s tightening supply:
· The Halving: ZEC completed its 2025 halving, cutting block rewards by 50%. This follows Bitcoin's deflationary model.
· Locked & Shielded Coins: A portion of new supply is directed to a community fund, and over 29% of all ZEC is held in private "shielded pools". These coins are not actively traded.
· Institutional Buys: Entities like Grayscale have dedicated funds, with institutions holding over 7% of the total supply.
The Result? The effective liquid supply available for trading is much lower than the circulating supply. In a market with sudden demand, this scarcity can dramatically increase volatility and upside pressure.
Key Levels to Watch: While momentum is positive, analysts note **$450 as a crucial short-term support**. Holding above it could open a path toward $600-$750, while a break below may weaken the structure.
Do you track on-chain supply metrics for your trades? Let's discuss in the comments!
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