Zcash gains 20% as Paradigm founder reveals firm made ZEC investment

Zcash experienced a significant 20% price increase over a 24-hour period, according to information disclosed by Paradigm co-founder Matt Huang. Huang revealed that Paradigm, the crypto investment firm, made an undisclosed purchase of ZEC, a privacy-focused cryptocurrency. ZEC, which employs zero-knowledge proofs to shield transaction details, was trading around $1,338 at the time of the last update.

The surge in ZEC's value follows Huang's announcement on Wednesday that Paradigm holds investments in the Zcash Open Development Lab (ZODL) and possesses ZEC tokens. This more than 10% rise further extends ZEC's one-month increase to approximately 160%, in contrast to Bitcoin's 18.2% gain over the same period, as reported by Coingecko data.

Huang praised Zcash as a "private complement to Bitcoin," emphasizing the importance of sustained funding for the project's developer fund, which addresses evolving AI-driven cyber threats and quantum computing advancements. He also advocated for integrating Zcash coin voting with other governance mechanisms to mitigate unpredictability inherent in a monetary asset.

Paradigm's investment in the broader Zcash ecosystem was previously disclosed in March when ZODL announced a seed round exceeding $25 million, with participation from Paradigm, a16z crypto, Coinbase Ventures, and Winklevoss Capital. ZEC's recent rise coincides with the broader crypto market's upward trend following the Federal Reserve's recent 25 basis point rate hike to 3.75%-4%, marking its first rate increase since 2023.

Privacy coins have notably outperformed the overall market; according to Glassnode data, the sector has risen 213% above its level at Bitcoin's October 2025 peak, while a comparable basket, excluding ZEC, has seen an 85% increase over the past year.