Altcoin Market Shows Mixed Picture: Polygon Surges Over 30 Percent While Zcash Suffers from Governance Disputes

Polygon Records Significant Price Gains

The altcoin market currently presents a divided picture: while some projects are showing positive developments, others are struggling with structural challenges. Particularly striking is the performance of Polygon, whose native token POL has gained around 12 percent over the past 24 hours ^[2]. On a weekly basis, the increase amounts to more than 30 percent ^[2].

POL is currently trading at $0.1466 with a market capitalization of approximately $1.54 billion ^[2]. Over the past 24 hours, the price has moved between a low of around $0.127 and a high of approximately $0.151 ^[2]. Several factors are contributing to this positive development: with the launch of the so-called Open Money Stack, Polygon is positioning itself as infrastructure for real payment processing, moving closer to banks and fintechs ^[2]. Additionally, high token burning is causing POL to be perceived as an increasingly scarce asset for the first time ^[2].

Technical Analysis Shows Upward Potential

The technical structure of POL suggests short-term strength, as higher highs and higher lows have been forming since the breakout ^[2]. Important support levels are located in the range around $0.133 and just below at approximately $0.130 ^[2]. On the upside, the price is currently encountering resistance at $0.151, with the zone around $0.16 coming into focus above that level ^[2].

Momentum remains favorable, and the upward movement appears stable ^[2]. A breakout above the recent high at $0.151 could open the path toward $0.18 ^[2]. However, should POL fall below $0.133, a pullback to the range around $0.119 would need to be expected ^[2].

Zcash Struggles with Governance Problems

In stark contrast to Polygon's success stands the development of Zcash. The privacy coin has recorded a 4 percent decline over the past 24 hours and is currently trading at $423 ^[1]. Particularly alarming: developer activity for Zcash has fallen to its lowest level since November 2021 ^[1]. This coincides temporally with a price decline of approximately 40 percent over the past two months ^[1].

The decline is accompanied by a governance dispute between the Electric Coin Company (ECC), Zcash's main development team, and Bootstrap, the non-profit organization that supports the protocol ^[1]. ECC announced plans to separate from Bootstrap and establish a new company, with the company speaking of "malicious governance actions" ^[1]. Bootstrap responded by stating that board members had discussed external investments and alternative structures for privatizing Zashi, Zcash's self-custody wallet for private transactions ^[1].

Institutional Investors Remain Active

Despite the negative developments, institutional investors and large holders remain active in Zcash. Data from Nansen shows that whales added ZEC worth $1.17 million over the past week, while new wallets accumulated $2.14 million ^[1]. On a weekly basis, ZEC nevertheless lost 14 percent ^[1].

The Zcash Foundation assured investors that the protocol's open-source design ensures continuity and resilience, preventing any single organization from controlling the blockchain ^[1]. Nevertheless, competitor Monero overtook Zcash in market capitalization, reclaiming its position as the leading privacy-oriented cryptocurrency ^[1].

From a technical perspective, the Zcash chart shows the formation of a parabolic reversal pattern, with an important resistance zone between $500 and $550 ^[1]. The Relative Strength Index stands at approximately 40, near the oversold area ^[1].