Zcash Halving and Its Effects on the Crypto Market

The Zcash (ZEC) halving scheduled for November 2025 represents a significant turning point for the cryptocurrency, altering its on-chain metrics and the behavior of its investors. With block rewards being cut in half—from 3.125 down to 1.5625 ZEC per block—this event further restricts Zcash’s issuance, strengthening its deflationary nature and intensifying scarcity effects . Alongside increasing institutional involvement and a partial move toward proof-of-stake (PoS), this halving highlights Zcash’s evolving role within a more mature crypto ecosystem.

On-Chain Fundamentals: Scarcity, Mining, and Supply Dynamics

The main consequence of the halving is a decrease in new ZEC entering circulation, closely following Bitcoin’s scarcity approach. Historically, this supply reduction has been linked to price increases, as demonstrated by Zcash’s 500% jump after the 2020 halving and

. The upcoming November 2025 halving will reinforce this trend, with Zcash’s block rewards now split as follows: 80% to miners, 8% to community grants, and 12% to a governance lockbox .

Mining profitability has also been adjusted. While Zcash continues to use the Equihash algorithm under a proof-of-work (PoW) system, has helped stabilize hash rate swings. This hybrid approach aims to balance security and efficiency, addressing energy consumption concerns while preserving decentralization. Furthermore, 28% of ZEC’s supply is held in shielded transactions using zk-SNARKs, a privacy mechanism that sets Zcash apart from other digital assets and .

Investor Behavior: NVT Ratio, Wallet Activity, and Institutional Flow

Following the halving, investor activity metrics indicate a notable rise in both speculative and institutional engagement. The Network Value to Total Sales (NVT) ratio—comparable to the price-to-sales ratio in traditional finance—has climbed, signaling increased demand.

by late November 2025, reflecting aggressive trading strategies.

Wallet usage further demonstrates Zcash’s distinct appeal. The Zcash Shielded Pool, which enables private transactions, saw ZEC balances grow from 2.6 million in March 2025 to over 4.1 million by November 2025

. This expansion coincides with increasing worldwide interest in privacy, a surge in searches for phrases like "crypto privacy" and "blockchain privacy".

Institutional participation has been transformative. Cypherpunk Technologies, supported by Tyler Winklevoss, has acquired more than 203,775 ZEC—almost 5% of the total circulating supply—and intends to further increase its holdings

. At the same time, in assets, demonstrates rising confidence in Zcash’s long-term prospects. These trends have tightened available supply, fueling a feedback loop of scarcity and demand.

Market Implications and Future Outlook

The effects of the halving go beyond technical indicators. Zcash’s negative correlation with Bitcoin—often referred to as a "privacy hedge"—has drawn investors looking for diversification during market slumps

. This was evident in November 2025, when to surpass $670, nearing a key breakout level on its four-hour chart. Experts anticipate a possible 40% rally if ZEC moves above $690, with a target of $956 .

Nonetheless, volatility remains a factor.

in late November 2025 highlights the risks inherent in speculative assets. Still, this pullback could pave the way for a stronger upward trend, especially if institutional demand continues to exceed retail selling.

Conclusion

The November 2025 Zcash halving has transformed the asset’s on-chain characteristics and investor sentiment. By curbing new issuance, stabilizing mining incentives, and boosting privacy features, Zcash has emerged as an attractive option in a market increasingly valuing scarcity and privacy. The combination of institutional interest and a hybrid PoW/PoS framework further enhances its long-term potential. For investors, this halving is more than a technical event—it is a strategic turning point, prompting a reassessment of Zcash’s place in a diversified crypto portfolio.