Cardano co-founder Charles Hoskinson weighed in on the incredible surge in Zcash (ZEC), a leading privacy-focused cryptocurrency.
According to CoinMarketCap, ZEC has risen from just $40.42 on September 1st to $619 at the time of publishing this article. Therefore, this represents an increase of 1,431% in just two months.
Notably, the token’s price has skyrocketed since early September, garnering industry attention and sparking conversations about the future of privacy coins.
This remark refers to Cardano’s upcoming zero knowledge (ZK) sidechain Midnight. Specifically, this initiative builds enhanced privacy and scalability features into the Cardano ecosystem.
Hoskinson’s post draws a comparison between Zcash’s success and what he envisions for Cardano after Midnight launches.
midnight project: Cardano’s bet on privacy and ZK technology
The Midnight project is one of Cardano’s most ambitious ventures. Currently in the testnet stage, the Midnight’s NIGHT token airdrop has already attracted millions of users across seven different blockchains. This level of participation shows active involvement in the community.
Additionally, Midnight Foundation recently announced a partnership with Google Cloud to advance zero-knowledge proof (ZKP) technology and encourage broader industry adoption. The project also established partnerships with over 80 developers and companies. Notably, collaborations include Maestro, Sundae Labs, Fluid Tokens, and OpenZeppelin.
Hoskinson believes Midnight could transform Cardano into a leader in blockchain privacy, matching the market enthusiasm currently seen with Zcash.
Cardano’s market struggle continues
While the excitement is growing around Midnight, Cardano’s native token ADA continues to struggle. As of the latest data, ADA is trading at $0.5470, up 2% in the past day but down more than 33% in the past month. The token is still more than 50% below its yearly high.
For years, Cardano’s performance lagged behind rivals such as Solana, Tron, and BNB Chain. Analysts often refer to it as a “ghost chain” due to its low Total Value Lock (TVL) and stablecoin supply currently limited to nearly $30 million.
Hoskinson’s outlook
Hoskinson claims that Midnight has the potential to completely change Cardano’s reputation. By introducing advanced privacy tools and scalable ZK technology, new sidechains have the potential to draw developers and capital back into the ecosystem.
He also expressed optimism that the project has the potential to generate billions in new activity and increase the long-term value of ADA.
Ultimately, it remains to be seen whether Midnight can replicate Zcash’s success, but Hoskinson’s confidence suggests that Cardano is gearing up for a pivotal stage in its evolution.
