Zcash (ZEC) has experienced a significant surge in value, defying the overall downward trend in the cryptocurrency market. The privacy coin saw a 12% increase in value on Thursday, outpacing the 2% drop in the overall market cap, according to CoinGecko.
Currently ranked 141st among cryptocurrencies, ZEC has also shown strong growth over the past week, with a nearly 29% increase in value. At the time of writing, ZEC is trading at $32.95, up from $29.15 just one day ago.
The recent spike in ZEC’s value can be attributed to a new feature rolled out by Coinbase. The popular cryptocurrency exchange announced that its users can now send Zcash to TEX addresses. Zcash offers multiple types of addresses, including transparent addresses (t-addresses) and private/shielded addresses (z-addresses) that utilize zero-knowledge proofs to encrypt transaction data while still being verifiable by network nodes.
TEX addresses are a new addition to Zcash, serving as receiving addresses that require funds to be sent from transparent addresses. This feature was introduced in response to increasing regulatory pressure on intermediaries like Binance, which mandated that all funds deposited into the exchange must come from transparent addresses. Failure to comply would result in the delisting of Zcash from the platform.
TEX addresses provide a workaround for users to send funds from shielded addresses to transparent addresses before transferring them to a TEX address. This ensures compliance with regulatory requirements while maintaining user privacy and security.
The introduction of TEX addresses has been well-received by the Zcash community and has contributed to the recent surge in ZEC’s value. As governments continue to scrutinize privacy-focused cryptocurrencies, features like TEX addresses are crucial for ensuring the continued adoption and viability of projects like Zcash.
In conclusion, Zcash’s recent price increase and Coinbase’s new feature highlight the importance of innovation and adaptability in the ever-evolving cryptocurrency market. By staying ahead of regulatory challenges and addressing user needs, Zcash continues to solidify its position as a leading privacy coin in the digital asset space.