Zcash experienced the sharpest major-token leverage reduction Friday as traders cut exposure following its rapid institutional-product-driven rally.
ZEC fell approximately 9% to $1,112, while open interest declined 20.1% to $1.4 billion, according to CoinDesk’s market report.
Approximately $17.2 million in ZEC positions were liquidated over 24 hours. Funding also turned negative, making Zcash the only major token in CoinDesk’s review with traders paying to maintain short exposure.
The decline followed a powerful rally tied partly to demand for Grayscale’s regulated Zcash product. That move had attracted leverage and removed a meaningful share of available ZEC supply from the market.
Zcash was still trading above $1,100 after the unwind, indicating that the move had not completely erased its recent breakout. But falling open interest shows that speculative positioning is now retreating.
Elsewhere, open interest in Hyperliquid’s HYPE and XRP fell approximately 5%. CoinMarketCap’s Altcoin Season indicator stood at 38 out of 100, well below the level associated with broad altcoin leadership.
TOKEN RECON ASSESSMENT
The Zcash trade is shifting from supply-driven momentum to a test of sustainable demand.
Falling price and falling open interest usually indicate leveraged longs closing rather than aggressive new shorts alone. Negative funding, however, creates the potential for another sharp squeeze if spot buying returns.
Watch $1,000 as the psychological defensive level, Grayscale product flows and whether open interest rebuilds without excessive positive funding.
