Zcash activates NU7 upgrade as network performance shifts

Network performance changes include 25-second block times

This change reduces the time required for three confirmations on the network from 225 seconds to 75 seconds.

They expect the live network rate to remain under 1%.

The upgrade limits the amount of private transaction activity per block to reduce the data wallets must scan to find payments. It also introduces new limits on shielded transactions, which use privacy features to conceal payment information.

Network Sustainability Mechanism redirects 60% of transaction fees

This mechanism is based on an idea originally proposed by developer Nate Wilcox called the Zcash Posterity Fund. It allocates 60% of transaction fees to miners as block rewards, returning that share to circulation over time.

The upgrade maintains the 21 million ZEC supply cap and the existing halving schedule. It also adds limits on shielded activity to reduce wallet synchronization demands.

Sprout privacy pool retirement renders 12,224 ZEC unspendable

The NU7 upgrade implements Zcash Improvement Proposal 2003, which rejects version 4 transactions previously required for spending Sprout funds. This change retires the Sprout privacy pool, rendering approximately 12,224 ZEC unspendable.

Cointelegraph reported the value of these inaccessible assets at about $15 million, while other reports valued the holdings at $16 million.

Zcash market performance remains mixed amid broader crypto selloff

Zcash market performance on Friday was mixed amid a broader cryptocurrency downturn. Coingape reported a 3.48% decline in the ZEC price to $1,276.66 over 24 hours, while FXStreet observed a 2% increase to $1,308.

The total cryptocurrency market value declined 5.55% to $2.54 trillion on Friday. Bitcoin dropped 5.28% during the same 24-hour period. Market sentiment reached 32 on the Fear and Greed Index, placing it in the fear category.

Technical indicators for ZEC on Friday included a 50-day Exponential Moving Average of $1,216 and a 200-day EMA of $856. The RSI sat at 55, with the MACD line positioned above the signal line. On the 4-hour chart, the price was $1,283.53 with an RSI of 53.98 and a MACD line 11.36 above the signal line.

Analysts suggested the asset could retest $1,350 if it closes above $1,300. A drop below $1,300 could lead to prices between $1,250 and $1,260, with further potential declines to $1,200 and $1,130.

Broader market volatility included over $1 billion in liquidations on Thursday. Bitcoin climbed above $80,500 on Thursday following a short squeeze that caused nearly $800 million in liquidations.

Ripple traded near $1.32 on Thursday, up 10% from the previous week's low of $1.20. Binance also revoked API keys for SignalPlus on Thursday.

Derivatives data shows $11 million in ZEC ETF outflows

This brought the total net outflow for the week to $14.77 million. FXStreet reported that the broader cryptocurrency market saw over $1 billion in liquidations on Thursday, while a ZEC-focused ETF recorded approximately $11 million in outflows.

Zcash derivatives trading volume increased 35.18% to $10.23 billion, while open interest decreased 8.47% to $2.73 billion, according to CoinGape. CoinGlass data showed Zcash Open Interest increased to 2.15 million ZEC from 2.05 million the previous day. Derivatives data indicates a buildup in leveraged positions for Zcash.

Community groups set expedited timeline for Dev Fund decisions

Jason McGee of Shielded Labs said, "This is a huge milestone for Shielded Labs" regarding the activation of the NU7 upgrade. Regarding the design process, McGee said, "We still think the original design was simpler and better, but we respect the process that led us here". He added, "It should be difficult to change the protocol, and the process should resist capture by any single organization, group, or influential individual".