Key takeaways
- Zcash rises 5% amid a derivatives short squeeze
- NU7 could reduce block times to 25 seconds
- Developers face an October 20 mainnet activation decision
Zcash (ZEC) climbed approximately 5% on October 12, trading near $1,280 as bearish traders faced forced liquidations and investors looked ahead to a major blockchain upgrade scheduled for November.
The privacy-focused cryptocurrency outperformed Bitcoin and Ethereum during the latest market rebound, with derivatives activity suggesting that short covering contributed to the rally.
Meanwhile, Zcash developers are preparing to decide whether to proceed with NU7, an upgrade that would cut block confirmation intervals by two-thirds.
Zcash Gains 5% Following Short Liquidations
ZEC advanced approximately 4.8% over 24 hours, compared with gains of roughly 0.9% for Bitcoin and 1.2% for Ethereum, according to October 12 market snapshots.
Derivatives data showed approximately $4.91 million in ZEC liquidations, including $3.87 million in short positions. That means bearish bets accounted for nearly 79% of liquidated contracts.
When leveraged short positions are forcibly closed, exchanges may buy back the underlying asset, potentially accelerating upward price movements.
Zcash's open interest also reportedly increased 4.82% to $2.57 billion, suggesting traders were adding exposure rather than simply closing positions.
However, growing leverage can amplify losses if prices reverse. ZEC previously experienced a similar short squeeze during its September rally, when derivatives positioning became a major driver of volatility.
Zcash NU7 Upgrade Targets November 5 Activation
Beyond today's price movement, Zcash is approaching an important technical milestone.
The NU7 upgrade activated on public testnet on October 4, introducing a target block interval of 25 seconds instead of the current 75 seconds.
According to the Zcash Foundation, the change is designed to reduce transaction confirmation times and improve the network's usability for payments and exchange deposits.
NU7 also introduces a Network Sustainability Mechanism that redirects part of transaction fees toward future mining rewards.
The upgrade follows the earlier Ironwood security update, which addressed vulnerabilities affecting Zcash's shielded transaction infrastructure.
Developers are expected to review testnet performance on October 20 before deciding whether the November 5 mainnet activation can proceed.
The date remains a target rather than a guaranteed launch.