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Information about ZKsync (ZK)
ZKsync is a trustless Layer 2 protocol for scalable low-cost payments on Ethereum, powered by zkRollup technology. It is a user-centric zk rollup platform from Matter Labs, with security, user experience, and developer experience as the core focus. ZKsync Version 1.0 launched on the Ethereum mainnet on June 15th 2020, enabling transaction throughput of ~300 TPS.
ZKsync is designed to scale Ethereum without sacrificing the security or decentralization of the network. It uses zero-knowledge rollups, known as “zk-rollups,” to bundle multiple transactions into one single transaction. This approach increases transaction output while minimizing the fees that users have to pay. ZKsync reportedly has a Total Value Locked of over $860 million.
Developed by the Matter Labs team, the ZKsync project has received support from many major investment funds such as a16z, OKX, Crypto.com, Bybit, ConsenSys, and has raised a total of over USD 458 million in funding.
ZK is a native coin of the ZKsync ecosystem, operating on ZKsync according to ERC20 standard, and can be used to:
Specifications
News
ZKsync has discontinued its Ignite liquidity rewards program, citing unfavorable market conditions. This decision is effective as of March 17, 2025, and includes the cancellation of the final phase reward allocations.
The project is now concentrating on developing its Elastic Network, envisioning a system of interoperable zero-knowledge chains, instead of maintaining a single-chain program.
Recent data shows ZK tokens have decreased substantially from their all-time highs, and the total value locked (TVL) has fallen to 139 million USD, reflecting significant market challenges.
ZKsync initiated the Ignite program, allocating 300 million ZK tokens (equivalent to 60 million USD) to enhance liquidity incentives across decentralized exchanges and lending platforms. Season 1 runs from January 6 to March 31, offering up to 100 million ZK tokens, approximately 20 million USD, to active DeFi users on the ZKsync Era network.
The launch of the Ignite program catalyzed a significant rise in ZKsync’s total value locked from 97 million USD to 184 million USD within a week. As a Layer 2 solution, ZKsync scales Ethereum dapps by utilizing ZK rollups, increasing transaction throughput and reducing costs. This surge suggests successful incentives for liquidity providers.
Deutsche Bank plans to integrate a Layer 2 solution using ZKsync’s Elastic Chain, which is expected to excite Ethereum supporters and promote more secure blockchain practices within traditional finance.
As part of Singapore’s Project Guardian, Deutsche Bank’s Project DAMA 2 aims to enhance asset tokenization and establish blockchain-ledgers, highlighting the bank’s commitment to innovation in financial services.
Regulators are adapting to blockchain’s rise while emphasizing oversight and compliance, underscoring the significance of Deutsche Bank’s L2 initiative within the evolving landscape of decentralized finance.
Impressive Scalability Goals: ZKsync aims for processing 10,000 transactions per second while maintaining a low fee of 0.0001 USD per transaction. These targets position the platform to rival existing layer-2 solutions that account for over 80% of Ethereum’s total locked value.
Innovative Developer Tools: The roadmap introduces EVM equivalence, LLVM tools, and a VSCode debugger, simplifying the development process. ZKsync’s user-friendly smart wallet SDK bridges the gap between Web3 and traditional Web2 experiences.
Focus on Privacy and Security: ZKsync emphasizes private Validium for maintaining privacy without compromising transparency. With decentralized sorting and advanced proof mechanisms, the platform aims to enhance security, ensuring robust user protection.
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