Zcash’s native token ZEC staged a sharp recovery after developers fixed a critical flaw that could have enabled counterfeit coin creation, with the price jumping 13.5% in the past 24 hours to $428.67. The move marks a 42% rebound from the June 5 low of $303, which followed a rapid 50% سقوط triggered by disclosure of the vulnerability.
Bug fix sparks relief rally
The rebound follows an emergency patch to a flaw in Zcash’s Orchard shielded pool, a core component that enables private transactions using zero-knowledge proofs. Independent researchers at Shielded Labs first identified the issue, warning it could allow unlimited minting of ZEC, though no exploitation has been observed.
Zcash Open Development Lab founder Swihart said the team executed a two-step response to contain the risk. A soft fork was first deployed to disable Orchard transactions and prevent potential misuse before public disclosure. This was followed by a hard fork upgrade, NU6.2, which restored full functionality after correcting the vulnerability.
The upgrade went live on June 3, with coordination from mining pools ViaBTC and Foundry to validate the fix and maintain network stability.
Market reaction and recovery
The initial disclosure triggered a steep selloff across trading desks, wiping out more than half of ZEC’s market value within hours. Since then, trading activity has stabilized, with data showing a recovery of roughly 41.5% from the bottom.
Despite the price rebound, the move is largely seen as a relief rally after an extreme decline rather than a full reset in sentiment. The coming weeks are expected to test whether traders view the swift technical response as sufficient to offset concerns about a long-standing vulnerability.
On-chain data signals stability
Network data suggests limited disruption to core users. Holdings in shielded pools, including Orchard, Sapling, and Sprout, remain near 4.98 million ZEC, only slightly below the pre-disclosure level of 5.1 million ZEC. This indicates that privacy-focused holders have largely maintained their positions.
Network security has also improved following a brief dip. Hashrate dropped around the time of the hard fork but rebounded quickly, more than doubling from its post-upgrade low as miners resumed operations.
Network performance normalizes
The upgrade briefly caused instability, with block production pausing for more than four hours on June 3, temporarily halting transaction confirmations. Activity has since returned to normal levels, with daily throughput estimated between 7,200 and 14,400 transactions, in line with pre-incident usage.
Swihart said the response helped strengthen coordination and oversight within the ecosystem. The network continues to process shielded transactions through the updated Orchard circuit.
Focus turns to future upgrades
Developers are now discussing a further upgrade, tentatively called Ironwood under a future NU7 release. The proposal includes “turnstile accounting,” a mechanism designed to verify total supply integrity without compromising user privacy.
Key price levels to watch
Traders are focusing on critical technical levels as the recovery unfolds:
- Around $300 has emerged as strong support following the selloff
- The $390 to $430 range now acts as a key resistance zone
Sustaining momentum above support and breaking through resistance will likely shape the next phase of price action as confidence gradually rebuilds.
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