Connection Between Zcash and Starknet Drives a Strong Case for STRK Price

Source Beincrypto

Starknet’s native token, STRK, surged 35% on Monday, according to CoinGecko data, as analysts draw parallels between its trajectory and Zcash (ZEC).

With Zcash and Starknet sharing links both through shared founders and a unified vision for programmable privacy, the recent Zcash frenzy drives a strong case for STRK.

Starknet’s Zcash Connection Sparks Renewed Interest in STRK

Trading volume for STRK nearly hit $500 million on Monday and has since extended to $832.16 million. Meanwhile, the STRK token was trading at $0.169, up a modest 5% in the last 24 hours on Tuesday.

Starknet (STRK) Price PerformanceStarknet (STRK) Price Performance. Source: CoinGecko

The surge came as investors began to notice an emerging narrative that Starknet may be the next evolution of Zcash, taking privacy technology from a niche Layer-1 into a scalable, programmable Layer-2 environment.

Zcash and Starknet: Privacy Meets Scale

Zcash pioneered zero-knowledge proofs (ZKPs) for private transactions, building one of the strongest privacy layers in crypto.

Now, Starknet, built on STARK proofs, can verify those same Zcash proofs directly on-chain, enabling privacy to operate natively at Layer 2 speeds.

“Zcash built the strongest privacy layer. Starknet built the fastest proof system. Together, they’re creating programmable privacy at L2 speed. Zcash remains the encrypted vault. Starknet becomes the fast, programmable layer on top,” analyst Djani explained.

This synergy could allow users to move ZEC into Starknet and deploy it privately across DeFi, games, or AI agents while maintaining full shielding.

It is a structural upgrade from app-level privacy tools like Tornado Cash, instead embedding confidentiality at the protocol level.

The “Spiritual Successor” Narrative

Speculation about the connection between the two ecosystems intensified after traders highlighted that Eli Ben-Sasson, co-founder of both Zcash and StarkWare (Starknet’s parent company), is effectively continuing the same vision, but at a higher layer of scalability and interoperability.

“Tell me why STRK isn’t the continuation of the ZEC trade. STRK co-founder is also a ZEC co-founder. STRK effectively expands privacy tech from an L1 to a programmable L2 environment. Starknet net flows highest of any L1/L2 after Arbitrum,” wrote DeFi researcher Avocado Toast.

Meanwhile, other crypto analysts and researchers highlight Starknet as a Zcash beta, adding credence to this thesis.

The comparison has sparked renewed interest in the “Ztarknet” thesis, suggesting that privacy and scalability, once seen as trade-offs, are finally converging through shared cryptographic infrastructure.

Capital Flows and Investor Caution

Meanwhile, Starknet has quietly become one of the strongest-performing ecosystems in the past month. It ranks second in net inflows across all L1s and L2s, behind only Arbitrum.

Top Net Inflows Among L1s and L2sTop Net Inflows Among L1s and L2s. Source: Artemis Dashboard

This capital rotation highlights mounting confidence in its technology stack and ZK roadmap. However, investors remain wary of unlocking pressure, with data from CryptoRank.io showing $18.9 million worth of STRK set to be released in the coming week as part of a 2% monthly unlock schedule that some fear could dampen near-term momentum.

The fear aligns with recent reports that 90% of token unlocks drive prices down. Nonetheless, if the rising demand proves sustainable, it could offset selling pressure resulting from the unlock event.

This is especially true if Starknet’s growth narrative, now tied to both privacy and scale, continues to attract liquidity and builders.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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