With only a few days to go, Zcash (ZEC) is about to experience a colossal change, it’s halving. Zcash has for years been known for its unique approach towards privacy and security and now is at the center of attention in the crypto world thanks to its up-and-coming halving event.

The event is set to happen on November 23, 2024. And will definitely reduce the mining rewards for each block from 3.125 ZEC to 1.5625 ZEC. That said, let’s take a deep dive into what halving is all about and how you can leverage this opportunity as a trader.

What is Zcash Halving?

A halving event, which occurs regularly on certain cryptocurrency blockchains, gradually slows the pace of new coin issuance. For Zcash, the halving reduces inflation, increasing scarcity over time as fewer coins enter circulation. The purpose is to safeguard and perhaps boost Zcash's long-term value, as scarcity can drive demand. Zcash halvings, like Bitcoin's, are planned every four years, which helps to maintain the issuance rate constant and predictable.

Why the Zcash Halving Matters

The reduction in new ZEC issuance creates a scarcity effect, historically influencing the price of cryptocurrencies following a halving event. With less supply entering the market, current ZEC holders may benefit from increased value if demand remains consistent or grows. Scarcity from halvings often draws attention from traders looking to capitalize on the anticipated appreciation in price.

For Zcash miners, the halving presents a difficulty because their earnings per block will be reduced by half. If costs outweigh prospective benefits, some miners may decide to depart. However, lower competition for miners with effective setups may lead to better mining profitability once the hash rate stabilizes following halving.

Price Action of ZEC Halving on CoinEx

The cost of Zcash (ZEC) on CoinEx has increased in the month from its initial low levels in early October to a considerable surge by early November, indicating a clear upward trajectory in value reflecting an optimistic market outlook. This is possibly due to the approaching Zcash halving scheduled for November 23, 2024.

The upcoming Zcash halving will decrease the block reward by half and limit the influx of ZEC into circulation. Similar events in the past have sparked scarceness, which often results in heightened trading and investment activity as individuals anticipate price growth following the lowered issuance rate.

As the halving date draws near, price changes could occur as traders prepare for profits. The recent rise in ZECs' value may suggest that market players are starting to buy in preparation for a surge after the halving event.

Zcash (ZEC) has shown growth on CoinEx, with gains against various trading pairs in the last couple of days compared to USDT (US Dollar Tether), USDC (USD Coin), and BTC (Bitcoin). Additionally, on CoinEx's platform, traders have the option to trade up to five times on ZEC paired with USDT, which allows them to potentially increase their profits amidst the surge in interest.

Considering the dwindling supply and ongoing demand that could lead to increased prices in the future, Zcash (ZEC) presents a prospect for traders aiming to benefit from the effects of its halving event. With its easy-to-use interface, minimal fees, and a variety of trading choices, CoinEx emerges as a platform for seizing this significant moment in the Zcash ecosystem.

PS: This article doesn’t constitute financial advice.