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$ZEC’s most recent surge, which got it close to $1,300, has managed to revive considerable comparisons between it and Bitcoin – in particular because both of them have a maximum supply of 21 million coins.
However, prominent analyst filbfilb argues that matching circulating supply alone says very little about valuation. He has developed a series of models that attempt to better quantify how much of Bitcoin’s network value Zcash has actually managed to earn.
The analyst compared $ZEC with Bitcoin using metrics such as transaction activity, transferred value, circulating supply, as well as potential future convergence between both networks.
Current Activity Suggests Bullish Biases May Be Overblown
Zcash currently has slightly less than 17 million coins in circulation, which approximately matches an earlier stage in Bitcoin’s issuance history.
But instead of simply applying Bitcoin’s valuation at that particular point to $ZEC, filbfilb adjusted it based on relative network usage.
At the equivalent issuance stage, Zcash’s TX activity amounts to roughly 3.71% of Bitcoin’s. When that percentage is applied to Bitcoin’s historical market capitalization, the result produces an implied $ZEC price of approximately $254.
A second model compares both networks today. At the moment, Zcash processes roughly 1.01% of Bitcoin’s transaction count, which, when applied to BTC’s current market cap, results in an implied value near $944 per $ZEC.
Source: cryptonews.net