Zcash Jumps 10% as NU7 Locks In Mainnet Activation for 25-Second Blocks

Published October 21, 2026, 10:00 AM PKT. Based on CoinDesk's October 21 market report (primary source), Binance market data observed by MABOnChain the same morning, with additional reporting from Pluang, CoinDesk's October 5 NU7 testnet report, TradingView via U.Today, BitRss via CoinGecko, and MABOnChain's October 6 report on the Winklevoss Zcash ETF filing (secondary sources).

Zcash jumped about 10% on October 21, 2026, trading near $1,260, after developers set the mainnet activation height for NU7, the network's next upgrade, according to CoinDesk. The activation height is the block number at which every node on the network switches to the new rules, and its setting confirms NU7 is on course for the planned November 5 mainnet launch. On Binance's spot market, ZEC changed hands at about $1,257.80 at 10:00 AM PKT, up 9.36% in 24 hours with roughly $215.4 million in 24-hour quote volume, based on exchange data observed by MABOnChain.

NU7 activation height set

NU7 cuts the time between Zcash blocks from 75 seconds to 25 seconds, so payments confirm roughly three times faster, and it sends 60% of each block's transaction fees into a reserve that is paid out over time, according to CoinDesk. The upgrade had been running on Zcash's public testnet since October 4, when it activated at block height 4,465,026, per CoinDesk's October 5 report.

The developers were due to assess testnet results on October 20 before finalizing the mainnet activation plans, and the CoinDesk report says the mainnet rollout remains targeted for November 5, pending that review.

75 seconds to 25: the block-time cut

The headline change is block speed. Under the NU7 proposal known as ZIP 218, the target block spacing drops from 75 seconds to 25 seconds, reducing the average wait for a first confirmation to roughly a third of today's level, according to TradingView's report citing U.Today and the Zcash Foundation. The upgrade ships in Zebra 7.0.0-rc.0, the first release candidate for NU7, and the shorter interval is aimed at point-of-sale payments, exchange deposits and cross-chain bridges, where a 75-second wait is a real obstacle.

The faster schedule does not mean Zcash issues new coins three times as quickly: NU7 reduces the reward per block to one-third, so the amount of ZEC issued per day stays the same, the 21 million supply cap is unchanged, and the four-year halving schedule survives, according to the same reporting. CoinDesk previously reported that a coinholder governance poll saw roughly 99.9% of participating coins back the 25-second block target, and that a record coinholder vote kept the halvings intact.

The activation also carries a migration deadline. After NU7 goes live, Version 4 transactions are disabled, and any ZEC still held in Sprout, the original 2016 privacy pool, becomes unspendable through existing mechanisms unless holders move their funds before the upgrade, CoinDesk reported on October 5.

The 60% fee reserve and what traders bought

NU7 also introduces a Network Sustainability Mechanism designed to keep funding network security as block rewards shrink with each halving. Under ZIP 235, 60% of each block's transaction fees are withdrawn from circulation into a reserve while miners keep the remaining 40%, and under ZIP 237 each block reissues a small, predictable slice of that reserve on top of its normal reward, according to TradingView's report.

Traders bought the upgrade news aggressively. About $490,000 worth of short positions were liquidated within a single hour across Binance, Bybit and OKX, with no long liquidations in the same window, Pluang reported. Pluang also noted that ZEC spot ETFs attracted $1.61 million in net inflows on October 20, the only altcoin ETF to draw fresh capital that day, while Solana, Hyperliquid and NEAR funds saw outflows.

The rally builds on an already explosive run. CoinGecko data via BitRss shows ZEC gained roughly 45% over the past week and about 138% across the last 30 days, pushing the privacy coin's market capitalization back above $20 billion and to its highest price since 2016. Grayscale's spot Zcash ETF, trading on NYSE Arca under the ticker ZCSH, began trading on August 25 and has supported the renewed attention, while Winklevoss Asset Services filed a preliminary S-1 for its own spot Zcash ETF in early October, as MABOnChain reported on October 6.

The near-term test is whether NU7's testnet results, reviewed October 20, hold up as the November 5 mainnet target approaches. If the upgrade lands cleanly, Zcash gets the fastest confirmations in its decade-long history and a fee-funded security budget that outlasts the block-reward era. If the review flags trouble, the activation height gets a second look.

This article is news reporting and is not investment advice.

Sources

• CoinDesk, "Bitcoin hovers around $83,000 as AI earnings revive tech, ZEC jumps 11%," October 21, 2026, primary source: ZEC jumped 11% to about $1,260 after developers set the mainnet activation height for NU7, NU7 cuts block times from 75 seconds to 25 seconds, 60% of transaction fees go into a reserve paid out over time, the upgrade had been on the testnet since early October, the activation height is the block number where every node switches rules
• Binance market data observed by MABOnChain, October 21, 2026, secondary source: ZEC/USDT traded at about $1,257.80, up 9.36% in 24 hours, with roughly $215.4 million in 24-hour quote volume; hourly klines verified fresh within one hour
• Pluang, "Zcash price jumps nearly 6%," October 21, 2026, secondary source: $490,000 in short positions liquidated across Binance, Bybit and OKX in one hour, no long liquidations, $1,212 on Binance spot, ZEC up 6.36% in 24 hours; ZEC spot ETFs drew $1.61 million in net inflows on October 20, the only altcoin ETF with fresh inflows, while SOL, HYPE and NEAR funds saw outflows
• CoinDesk, "Zcash NU7 Testnet Launches With 25-Second Blocks," October 5, 2026, secondary source: testnet activation at block 4,465,026 on October 4, testnet review set for October 20, mainnet targeted for November 5, Version 4 transactions disabled after activation, ZEC in Sprout becomes unspendable without migration
• TradingView via U.Today, "Zcash Gets Upgrade Alert: Two Key Dates in October," October 3, 2026, secondary source: Zebra 7.0.0-rc.0 first release candidate, ZIP 218 block spacing 75 to 25 seconds, ZIP 235 60% of fees to reserve with miners keeping 40%, ZIP 237 predictable reissue of reserve slice, daily issuance unchanged, 99.9% of participating coins backed the 25-second target
• BitRss via CoinGecko, "Zcash Reaches Highest Price Since 2016," October 20, 2026, secondary source: highest price since 2016, market capitalization past $20 billion, roughly 45% weekly and 138% 30-day gains, all-time high $3,191.93 on October 28, 2016, Grayscale ZCSH ETF trading on NYSE Arca since August 25
• MABOnChain, "Winklevoss Asset Services files preliminary S-1 for spot Zcash ETF," October 6, 2026, secondary source: the early-October Winklevoss spot Zcash ETF filing, Nasdaq ticker WINK, 0.25% fee, Gemini as custodian