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Ethereum’s Vitalik Buterin Makes a New Bet on Zcash and Privacy

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Ethereum’s Vitalik Buterin Makes a New Bet on Zcash and Privacy

Ethereum founder Vitalik Buterin has donated to Shielded Labs, backing development of Crosslink, a proposed consensus upgrade for Zcash.

The move signals a deepening commitment by Buterin to privacy-preserving infrastructure, as well as growing interest in strengthening finality and settlement guarantees in proof-of-work blockchains.

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Vitalik Doubles Down on Privacy Infranstructure in Crypto

Shielded Labs is developing Crosslink, a parallel finality layer designed to sit on top of Zcash’s existing proof-of-work consensus.

In simple terms, Crosslink adds a second confirmation system that locks in transactions faster and more decisively. This reduces the risk of chain reorganizations, rollbacks, and double-spend attacks.

As a result, exchanges can shorten confirmation times, cross-chain bridges gain stronger security guarantees, and applications become easier to build on Zcash.

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What Shielded Labs Does for Zcash

Shielded Labs is a Zcash-focused research and engineering group working on core protocol upgrades rather than applications or tooling.

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Its mandate centers on improving Zcash’s long-term security, usability, and cryptographic guarantees—especially around shielded transactions and privacy-first design.

Buterin’s support comes amid a broader shift in his public advocacy toward privacy and resilience over growth metrics or convenience.

In recent months, he has repeatedly argued that blockchains must optimize for worst-case scenarios, not best-case user experience. 

That includes resisting censorship, minimizing trust assumptions, and protecting users even under hostile conditions.

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Privacy, in that framing, is not optional. It is core infrastructure.

ZCash Daily Price Chart. Source: CoinGecko

The Privacy Push Is More Critical Than Ever

Buterin has warned that financial transparency without strong cryptographic privacy creates long-term risks, including surveillance, coercion, and systemic fragility.

He has increasingly praised systems that embed privacy at the protocol level rather than layering it on as an optional feature. Zcash’s shielded transaction model aligns closely with that philosophy.

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By backing Shielded Labs, Buterin is effectively endorsing privacy-preserving design paired with stronger settlement guarantees—two areas he sees as underinvested across the industry.

A Signal to the Broader Crypto Ecosystem

The donation also lands at a moment when Ethereum itself is reassessing parts of its scaling and security roadmap.

While Buterin has criticized superficial innovation and “copy-paste” infrastructure elsewhere, his support for Zcash highlights what he sees as meaningful progress: protocol-level upgrades that improve safety, finality, and user protection.

In that sense, the move is less about Ethereum versus Zcash—and more about the kind of blockchain architecture Buterin believes will survive long term.

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Crypto World

XRP Price Stays Below $1.40 With 60% of Supply Now in the Red

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XRP Price Stays Below $1.40 With 60% of Supply Now in the Red

XRP (XRP) traded at $1.35 on Monday, a 63% drawdown from its multi-year high of $3.66 reached in July 2025. As a result, many XRP holders are sitting on significant unrealized losses, underscoring the risks facing crypto investors in bear markets.

Key takeaways:

  • XRP’s 63% drawdown from its $3.66 multi-year high has left holders with over $50 billion in unrealized losses.

  • Key XRP levels to watch in the short term include $1.40, $1.30 and $1.27.

60% of XRP circulating supply now in the red

The XRP/USD pair trades 28% below its yearly open of $1.87, extending losses after it closed 2025 down 11.6%. The prolonged weakness has pushed a significant portion of its supply into the red.

Related: XRP faces $650M sell risk as charts hint at prices below $1

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With XRP trading at $1.35 at the time of writing, roughly 36.8 billion XRP are currently held at a loss, representing $50.8 billion in unrealized losses, or more than 60% of the circulating supply, according to data from Glassnode.

XRP: Total supply in loss. Source: Glassnode

XRP’s spot price is also below its aggregate holder cost basis, currently at $1.44, suggesting that long-term holders are increasingly under strain. 

XRP/USD average holder cost basis. Source: Glassnode

Spot XRP ETF investors are also feeling the pressure. Data from SoSoValue shows that these investors are reducing exposure to these investment products, which have recorded outflows for two consecutive days totaling $22.8 million.

More than $16.2 million in net outflows were recorded on Friday, marking the largest redemption since Jan. 29, when spot XRP ETFs saw $93 million in outflows.

Spot XRP ETF flows chart. Source: SoSoValue

The risk-off sentiment is also seen in global XRP investment products, which recorded more than $30 million in net outflows during the week ending March 6.

Key XRP price levels to watch below $1.40

The XRP/USD pair continued to trade within a range, with $140 as resistance and $1.30 a key support level that the bulls must hold to prevent further downside.

The price is now retesting the bottom of the range, as shown in the chart below.

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“If buyers step in here, we could see XRP rotate right back toward the top of the range again,” analysts at CryptoPulse said, adding:

“If this level breaks, the range structure starts to shift and price could look for lower levels.”

XRP/USD 12-hour chart. Source: CryptoPulse

A key area of interest lies between $1.30 and the local low of $1.27 reached on Feb. 28. If the price loses this level, the next stop could be the Feb. 6 low of $1.13, which is also the 200-week exponential moving average (EMA).

XRP/USD daily chart. Source: Cointelegraph/TradingView

On the upside, bulls are now focused on flipping the 200-week simple moving average (SMA) into support at $1.40.

Glassnode’s UTXO realized price distribution (URPD), which shows the average prices at which ETH holders bought their coins, shows an important level at the 200-week SMA, where investors acquired $1.28 billion in XRP.

XRP: UTXO realized price distribution (URPD). Source: Glassnode

As Cointelegraph reported, the XRP price could rally to $1.60 and then $1.95, if the support at $1.40 is reclaimed.