While Zcash Struggles, XRP and Solana See Institutional Booms

• Zcash drops up to 20% after the full Electric Coin Company team resigns.
  
• XRP records ETF inflows and increased whale activity following Ripple and AWS collaboration news.
• Solana sees ETF inflows, token launches, and expanded institutional adoption.

Zcash entered a critical phase after its entire core development team resigned earlier this week. The governance crisis contrasts with growing institutional activity around XRP and Solana. The developments were detailed in a report by the Altcoin Buzz YouTube channel.

Zcash Faces Governance Crisis

Zcash is under pressure following the resignation of the entire Electric Coin Company (ECC) team, totaling about 25 employees. The departures included senior leadership such as the CEO and the chief scientist. The resignations stemmed from a governance dispute with Zcash’s bootstrap board rather than a technical failure.

Related:  Zcash Developers Quit ECC After Governance Clash With Bootstrap

The ECC team said changes to employment terms made it difficult to continue working under conditions they viewed as compromising integrity. Despite the leadership exit, the Zcash protocol remains functional. Blocks are still being produced, and no security breach or network outage has been reported.

Market reaction was immediate. Zcash’s token, ZEC, dropped more than 14% shortly after the news broke. Over the past seven days, the token declined by roughly 29%, erasing a significant portion of the project’s market capitalization.

Altcoin Buzz noted speculation around insider dumping, but available on-chain data does not support that claim. Large token transfers cited by critics occurred several days before the resignation announcement. 

Transaction activity returned to typical levels after the news, suggesting the sell-off was driven by uncertainty around leadership and direction.

Adding to the complexity, Cointelegraph reported that the former ECC team plans to launch CashZ, a new Zcash wallet built on the Zashi codebase. The project aims to scale Zcash usage, though its impact on the broader ecosystem remains unclear.

XRP Gains Attention From Institutions

Ripple is working with Amazon Web Services to explore integrating Amazon Bedrock AI tools with the XRP Ledger. The collaboration focuses on improving system log analysis, cutting processing times from several days to minutes.

On the other hand, XRP exchange-traded products recorded inflows while Bitcoin and Ethereum ETFs experienced outflows. XRP products attracted nearly $9 million in a single day.

On-chain data also shows rising activity. Whale transactions on the XRP Ledger reached three-month highs, with thousands of transfers exceeding $100,000. 

XRP’s price has increased more than 20% this year, making it the third-largest cryptocurrency by market capitalization. CNBC also described XRP as one of the most active crypto trades currently drawing investor attention.

Solana Records ETF Inflows and Network Growth

Solana is also seeing strong momentum. Solana Mobile confirmed the launch of its SKR governance token on Jan. 21. The distribution includes 30% allocated to airdrops for device users and ecosystem developers.

Altcoin Buzz reported that Solana ETFs recorded more than $38 million in net inflows over the past week. Institutional interest expanded further after Morgan Stanley announced plans to roll out spot crypto trading on its E-Trade platform, starting with Bitcoin, Ethereum and Solana.

Related: Brad Garlinghouse Says Ripple Will Focus on Long-Term Crypto Utility, Not Hype Cycles

Network data supports the trend. Solana’s stablecoin supply increased by more than $900 million on Jan. 7. In 2025, the network reached record application revenue, surpassed 3 million daily active wallets, and led in tokenized stock market capitalization.

The contrasting developments underscore how governance stability and institutional engagement continue to shape outcomes across the cryptocurrency market.