Zcash (ZEC) developer activity has fallen sharply over the past two months, according to data from Santiment, with the token price down about 40% over the same period. The slowdown coincides with a governance dispute between ECC and Bootstrap that has weighed on investor sentiment.
Santiment notes that typically higher development activity helps altcoins perform better, while a slowdown in innovation is often followed by price weakness. Investors have grown cautious as the dispute persists.
The report traces a governance dispute between Zcash’s core developer Electric Coin Company (ECC) and the nonprofit Bootstrap, which has weighed on investor sentiment across the project. ECC recently announced it would sever ties with Bootstrap and form a new company, citing malicious governance actions. Bootstrap countered that discussions were limited to fundraising for a Zcash-specific non-custodial wallet (Zashi) and organizational restructuring rather than a dissolution of governance. Meanwhile, ECC developers are working on a new wallet, cashZ, with a near-term release planned.
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