Developer activity concerning the privacy-centric cryptocurrency Zcash has dwindled to its minimum since 2021, attributed to a governance conflict and a downward trend in prices.

Market insights from Santiment shared on X revealed that Zcash’s developer activity hit its lowest mark since November 2021, with its token ZEC losing around 40% over the prior two months.

“Historically, rising development activity allows altcoins to shine. A lack of innovation and effort, however, typically results in decline,” stated Santiment.

The decline in developer activity coincides with a governance dispute involving the Electric Coin Company, the primary development team of Zcash, and Bootstrap, the organization backing the protocol.

The Electric Coin Company announced its intention to split from Bootstrap, citing “malicious governance actions.” Bootstrap’s response noted discussions among board members regarding involving external investments to privatize Zashi, the crypto wallet built for Zcash transactions.

On Thursday, ECC developers indicated they are crafting a new wallet, cashZ, planned for release in a few weeks.

In response to the governance situation, the Zcash Foundation reassured investors that the privacy-preserving protocol remains stable, thanks to its open-source code designed for resilience, preventing control by a single entity. They stated:

“This structure ensures that even with organizational changes, the integrity and continuity of the Zcash blockchain remain intact.”

Despite these reassurances, Zcash’s price dipped 14% over the past week and was approximately $433 when reported. Interestingly, some investors have shown resilience, with whales accumulating $1.17 million in ZEC tokens last week while new wallets added $2.14 million.

Zcash’s major competitor, Monero, surpassed its market capitalization recently, reclaiming its spot as the leading privacy cryptocurrency, according to CoinMarketCap.