Zcash has activated its NU7 network upgrade, cutting its target block time from 75 seconds to 25 seconds. The upgrade brings faster transaction processing, new limits on private transactions and changes to mining rewards. Meanwhile, ZEC was trading near $1,250 after falling almost 6% over the past 24 hours.
Summary
- Zcash activated the NU7 upgrade at block 3,543,405, reducing the target block time from 75 seconds to 25 seconds.
- The upgrade introduces new limits for shielded transactions and reserves 60% of transaction fees for future mining rewards.
- Around 12,224 ZEC held in the retired Sprout privacy pool can no longer be spent under the current network rules.
- ZEC traded near $1,250 after losing almost 6% in 24 hours.
- Key technical levels show resistance near $1,344 and support around $1,235, with another support level near $1,127.
The upgrade officially went live on November 6 at around 02:34 UTC at block 3,543,405. It aims to make transactions faster, improve network performance and change how transaction fees are distributed.
However, the upgrade has not stopped selling pressure. ZEC was trading around $1,250, with daily trading volume reaching $1.33 billion.
Zcash’s NU7 upgrade reduces the target time between blocks from 75 seconds to 25 seconds. This could help payments receive confirmations faster, although actual confirmation times still depend on network activity and the number of confirmations required by wallets, merchants and exchanges.
The new system is also expected to increase the estimated capacity for Orchard shielded transactions from around 2.9 to 6.6 transactions per second.
During the first few hours after activation, blocks were still averaging around 39 seconds as the network adjusted its mining difficulty.
Importantly, the faster block production does not mean more ZEC will be created each day. The network has adjusted the reward per block to maintain its existing daily coin issuance schedule.
Another major change involves transaction fees. Under the new rules, miners receive 40% of transaction fees, while the remaining 60% is reserved through the Network Sustainability Mechanism to support future mining rewards beginning around February 2031.
These fees are not permanently burned, and Zcash’s maximum supply remains unchanged at 21 million coins.
The upgrade also introduces limits on shielded transactions to reduce the amount of data wallets need to download when checking the blockchain. Developers estimate that the maximum daily download requirement will fall from 271 MB to 169 MB.
However, the upgrade has also disabled the older Sprout privacy pool. Around 12,224 ZEC remain in this pool and can no longer be spent under the current network rules. At ZEC’s reported price, those coins are worth approximately $15.3 million.
Zcash co-founder Sean Bowe previously discussed the retirement of Sprout and the possibility of creating a future recovery mechanism. However, no such change has been approved.
Before the upgrade went live, developers also released seven security fixes for Zebra software and asked network operators to update their systems to remain compatible with the new rules.
Despite the major network changes, ZEC remained below $1,300 on November 6. Its price moved between $1,217.35 and $1,330.22 over the previous 24 hours. The token was also down around 4.94% over the past month.
Technical indicators show that ZEC is still trying to find stable support after falling from late-September levels near $1,650.
The Bollinger Bands indicator places immediate support around $1,235, while resistance stands near $1,344. If the price falls further, another potential support level is around $1,127.
The Aroon indicator also suggests that downward price movement has been stronger than upward movement recently, although a clear trend has not yet formed.
Crypto analyst More Crypto Online said ZEC was still following an ascending price channel, suggesting that the broader upward structure remains in place despite the recent decline.
Meanwhile, Crypto Patel raised concerns about the roughly 12,226 ZEC affected by the Sprout retirement, warning that making these funds unspendable could hurt user confidence.
For now, traders are watching whether ZEC can move above $1,344. A break above that level could support a recovery, while a fall below $1,235 could increase selling pressure and expose the price to the $1,127 area.
This article is for informational and educational purposes only and does not constitute investment advice.