Zcash, one of the longest-running privacy-focused cryptocurrencies, is facing renewed pressure as developer activity drops to multi-year lows and its native token continues a prolonged price slide. A governance dispute involving key organizations linked to the project has further weighed on sentiment, even as large investors quietly accumulate the asset.

Developer Contributions Fall to Lowest Since 2021

Recent data from market intelligence firm Santiment shows that development activity associated with Zcash has fallen to its weakest level since November 2021. The slowdown highlights growing concerns within the Zcash ecosystem, where innovation and active code contributions have historically been viewed as a key strength.

Santiment noted that sustained development often helps altcoins outperform during broader market cycles, while declining activity can signal stagnation. In Zcash’s case, the drop in developer engagement has coincided with a sharp correction in price. The ZEC token has declined roughly 40 percent over the past two months, reflecting reduced confidence among traders and long-term holders.

Governance Dispute Adds to Market Uncertainty

The decline in developer momentum comes at a time of internal conflict. A governance dispute has emerged between the Electric Coin Company, the primary development team behind Zcash, and Bootstrap, the nonprofit organization that supports parts of the protocol’s ecosystem.

The Electric Coin Company recently announced plans to separate from Bootstrap and establish a new corporate structure. According to the company, the decision followed what it described as malicious governance actions. The announcement raised concerns about coordination and long-term direction within the Zcash community.

Bootstrap responded by stating that its board had been discussing external investment opportunities and alternative structures related to Zashi, a self-custodial wallet designed for private Zcash transactions. These discussions, according to Bootstrap, were part of broader efforts to explore sustainable operational models.

New Wallet Plans and Assurance on Protocol Stability

Amid the dispute, developers at the Electric Coin Company said they are working on a new wallet called cashZ, which is expected to launch within the next few weeks. The announcement suggests that core contributors are continuing to build despite organizational tensions.

The Zcash Foundation, another key entity in the ecosystem, sought to reassure users and investors that the protocol itself remains secure. In an official response, the foundation emphasized that Zcash’s open-source design ensures resilience and prevents any single organization from exerting control over the network.

According to the foundation, structural changes within individual organizations do not threaten the integrity or continuity of the Zcash blockchain. This reassurance was intended to calm fears that governance disagreements could disrupt the protocol’s development or operation.

ZEC Price Weakness Continues Despite Whale Accumulation

Despite these assurances, market reaction has remained cautious. ZEC fell around 14 percent over the past week and was trading near $43.3 at the time of writing. The price action reflects ongoing uncertainty as traders assess the impact of slower development and governance challenges.

However, on-chain data suggests that larger investors are not abandoning the asset. Crypto analytics platform Nansen reported that whale wallets accumulated approximately $1.17 million worth of ZEC on the spot market over the past week. Newly created wallets also added around $2.14 million during the same period, indicating selective accumulation despite broader weakness.

Monero Reclaims Lead in Privacy Coin Market

While Zcash struggles, rival privacy-focused cryptocurrency Monero has strengthened its position. Monero surpassed Zcash in market capitalization on Thursday, reclaiming its status as the largest privacy coin by market value, according to CoinMarketCap data.

The shift underscores the competitive pressures within the privacy coin sector, where ongoing development, governance clarity, and user trust play a major role in long-term adoption. For Zcash, resolving internal disputes and reigniting developer participation may prove critical in determining whether it can regain momentum in the months ahead.