Zcash Foundation Defends Network Resilience Amid High Selling Pressure on ZEC in 2026
The Zcash Foundation recently made a statement defending the Zcash (ZEC) network’s independence from any third party. This came in response to allegations that the core team had abandoned the project, as onchain data showed a significant cash outflow from the team.
According to onchain data analysis from Santiment, development activity on the Zcash network has dropped to its lowest level since 2021. This decline in GitHub events from the Zcash team coincided with reports of a mass exodus of core developers.
On January 7, 2026, the entire team from Electric Coin Company resigned due to internal governance conflicts. Approximately 25 ECC team members, including CEO Josh Swihart and Chief Scientist Chelsea Komlo, stepped down. Despite this, the Zcash Foundation reassured the ZEC community that the network remains resilient and continues to operate smoothly.
Following the team exodus, the ZEC price experienced increased selling pressure, resulting in an 18% drop to below $400 before rebounding to $431. The market data from CoinMarketCap reflects this price movement.
After a successful bull rally in 2025 driven by the privacy narrative, the ZEC price is now facing short-term selling pressure. Concerns have been raised about the network’s ability to implement crucial updates like Halo 2, a Trustless ZK proof, following the departure of key developers.
From a technical analysis perspective, ZEC has formed a potential macro reversal pattern. However, this pattern can only be invalidated if the price rallies above its previous all-time high.
In conclusion, the Zcash network has faced challenges with low development activity and a team exodus, leading to selling pressure on the ZEC price. Despite these setbacks, the Zcash Foundation remains confident in the network’s resilience and ongoing operation. Investors and stakeholders will be closely monitoring how the ZEC price responds to these developments in the coming days.
