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Analysts are keeping a close eye on the first halving for Zcash, which is a Bitcoin fork launched by Zooko Wilcox that aims to focus on privacy. Each block reward halving or reduction has an effect on the market of a cryptocurrency, so Zcash’s first halving seems to be one of importance.

In May, Bitcoin experienced its long-awaited block reward halving. It means the number of coins mined per block was cut in half, leading many to expect a notable surge as the market supply of Bitcoin was technically supposed to decrease relative to demand.

Since the halving, Bitcoin has gained 70 to 80 percent against the USD, with a rising demand for the crypto driving up its value.

As Qiao Wang, a well-known crypto analyst and DeFi investor recently stated:

“Also a friendly reminder for ZEC halving in a month. Unlike BTC’s 3rd halving which was completely overhyped the 1st ZEC halving probably matters.”

First halving for Zcash is just days away

ZCash’s halving is going to happen in four days. Once the halving takes place, miners of the $700 million cryptocurrency will face their block rewards cut in half, hence “halving.”

In theory, this should result in higher prices: a 50 percent decline in block rewards will mean that miners have 50 percent less of the crypto to sell on a daily basis. Assuming demand for ZEC holds up, it should increase in price over time, barring any supply shocks.

According to Ryan Watkins, an analyst at Messari, though, this may not be the case.

He says that on-chain data shows there is a reason to believe that miners only comprise a small amount of the selling pressure that has dramatically crashed ZEC over the past years:

“Assuming miners sell all their ZEC as they mine it, they still have only historically made up less than 5% of ZEC daily trading volumes over the past year. The measure isn’t perfect, but its a good enough proxy to show that miners may not be what’s holding ZEC back.”

For context, the altcoin is notorious for falling without catching any bid after trading higher than BTC when it launched four years ago.

Even so, many experts are convinced that ZEC does have a viable long-term value proposition. Pseudonymous DeFi and crypto investor “DgnTec” recently stated:

“I’m changing my mind on ZEC. The need for a private SOV is even more evident in DeFi, where whales trade in the open, susceptible to frontrunners and virtue signaling observers.”

Ryan Selkis, CEO of Messari believes ZEC has the potentially to be a “trojan horse” winner in this bull cycle due to a “clean opt-in / opt-out privacy pool builds momentum with regulators while fixing long-term fungibility (unlikely to get fixed in BTC)”