The hype surrounding Zcash faded in the week through 3rd November, with the new digital currency’s prices suffering sharp declines early in the week.
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On its 28th October launch, the ZEC/BTC currency pair reached roughly 3,300 BTC (more than $2m), but fell to below a value of 1 BTC by 30th October, Poloniex figures reveal.
The pair then mounted a recovery, rising to 3.58 BTC on 31st October, followed by another sharp drop to 1.29 BTC by 4th November.
Market analysts reported that this was the result of a decline in trader interest as supply for the new token, at first exceedingly rare, increased.
Petar Zivkovski, director of operations for Whaleclub, noted that Zcash now needs to “find its utility, grow a developer network and develop a support network” before it can be taken more seriously.