ZKsync is evolving with a Total Value Locked boost and a release of liquidity rewards for users patronizing its top DEXs.
ZKsync, an Ethereum layer-2 scaling network has released 300 million ZK tokens ZK $0.22 24h volatility: 2.1% Market cap: $813.97 M Vol. 24h: $149.91 M valued at $60 million in its recently launched Ignite Program. As reported by The Block, the allocated tokens will act as liquidity incentives for participants in the program over nine months.
Essentially, the Ignite Program is developed for Decentralized Finance (DeFi) to transform the ZKsync Era into a fully-fledged liquidity hub. The program will eliminate fragmentation and increase user adoption, amplifying network effects by unifying liquidity across the DeFi Elastic chain.
The Ignite Program is split into multiple seasons. The first Season which runs between January 6 to March 31 will see DeFi users receive about 100 million ZK tokens valued at $20 million. DeFi users will receive the remaining 200 million tokens in the subsequent seasons.
Importantly, only DeFi users who provide liquidity across selected decentralized exchanges, derivatives trading platforms, and lending platforms on the ZKsync Era network can participate. This includes DEXs such as Uniswap, SyncSwap, and PancakeSwap, lending platforms like Aave, and perpetual platforms such as Holdstation.
The Ignite Program Launch announcement appears to have sparked renewed optimism in the ZKsync ecosystem. According to data from DeFiLlama, the Total Value Locked (TVL) on ZKsync has soared to $186.44 million, as of this writing. The TVL jumped from $97 million to its current level, an almost 90% rally.
Typically, a high TVL means that the Layer-2 scaling solution has gained increased trust among users. As a result, they are willing to lock their assets in it as they believe the network is secure and stable.
Notably, the ZKsync platform boosts Ethereum-based Decentralized Applications (dApps) by increasing transaction throughput and reducing associated costs. Leveraging Zero-Knowledge proofs (ZK-proofs), ZKsync aims to improve the scalability, privacy, and security of the Ethereum mainnet.
In June 2024, ZKsync saw declined user activity and a drop in TVL following a token airdrop with 3.6 billion ZK distributed to eligible addresses. The 7-day moving average of active addresses fell to just 30,000 by the end of December from over 200,000 in July 2024.
ZK rollup chains, including Scroll, Linea, and Starknet, also experienced similar declines.
Despite its 2024 challenges, ZKsync has shared its ambitious goal for 2025. ZKsync plans to reduce transaction fees to as low as $0.0001. This is in addition to increasing network speed to 10,000 transactions per second (TPS) by 2025. According to ZKsync, the goal is to boost the platform’s performance and usability.
Furthermore, the Ethereum L2 plans to enhance ZKsync’s Elastic Network and ZK Stack, making them the best option for blockchain developers. Also, with the reduced median gas fees by the end of 2025, ZKsync’s technology will become more attractive for developers.
The protocol’s ambitious 2025 roadmap aligns with its earlier efforts to achieve greater decentralization. In September, the protocol launched its decentralized governance model, which enables community members to participate directly in the protocol.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Altcoin News, Cryptocurrency News, News
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
