Zcash rises 6% after Orchard bug; shielded pool outflow

Developers disclosed a flaw in Zcash’s Orchard shielded pool on June 5 and said the issue had been fixed days earlier. After the disclosure, ZEC traded about 6% higher to roughly $432. On-chain records show a one-day withdrawal of about 157,931 ZEC from shielded pools on June 5, the largest single-day outflow since January 2.

The Orchard shielded pool is the protocol layer that holds ZEC in encrypted form. The June 5 withdrawals moved funds out of the specific layer affected by the flaw. The outflow coincided with the public disclosure.

Trading activity rose sharply around the outflow. Decentralized exchange trades for wrapped ZEC reached 17,401 on June 5, the highest two-month reading, and centralized exchange spot volume peaked at about $3.76 billion on June 6, well above the 30-day daily average near $899.5 million. Trading volumes fell back after the initial surge.

On-chain usage showed declining trends after the spike. Daily on-chain transactions were lower by about 3,771 on a seven-day basis compared with the prior week, after reaching a 30-day peak of 38,515 on May 15. Active addresses jumped briefly to 10,422 on June 5 and then settled near 5,000 per day. Over the past 90 days, ZEC’s price rose roughly 106% while on-chain transactions fell about 11% and active addresses increased by under 9%.

Spot exchange flows were deeply negative around June 4 before net spot buying returned by June 8. Large-holder activity diverged: standard large addresses reduced holdings by about 8.9%, while the top 100 addresses increased their ZEC positions by roughly 4%. Positive social mentions were at their lowest level since May 2.

As of the most recent data, ZEC is trading near $432. Observers are watching shielded pool balances, on-chain transaction levels and large-holder movements for further changes in market activity.