According to the data source L2Beat, the total value secured has risen by 12% in one week (Ethereum).
Capital continues to pour into Matter Labs’ zkSync Era, a zero-knowledge (ZK) rollup aimed at scaling Ethereum.
According to data source L2Beat, the total value locked (TVL) on zkSync Era surpassed $500 million on Monday morning, a 12% increase in one week. TVL is a commonly employed metric for monitoring the total value of digital assets secured or staked on a decentralised finance platform.
The scaling solution, which maintains Ethereum Virtual Machine (EVM) compatibility while assuring native account abstraction, is already the third-largest rollup in terms of total value sealed, following Arbitrum and Optimism.
More than 220,000 ether (ETH) valued at approximately $378.3 million, approximately 121 million USDC (a dollar-pegged stablecoin), and 14.43 million MUTE valued at $7.53 million were sealed on zkSync at the time of publication. MUTE is the native cryptocurrency of Mute, a decentralised exchange based on zkRollup.
Since May, the average number of daily active addresses has increased to 175,000 over the past four weeks. The release of zkSync occurred in March 2023.
Rocketpool recently went live on zkSync Era, joining the growing list of decentralised applications migrating to layer 2 platforms. According to Galaxy Digital, the increased user demand for rollups is likely due to the concentration of Ethereum core developers on enacting the ethereum Improvement Proposal (EIP) 4844.
The EIP 4844 will add a new transaction type to Ethereum that accepts “blobs” of data and reduces rollup transaction fees.
The prioritisation of EIP 4844 as the next major code change in Ethereum’s upcoming Cancun/Deneb upgrade confirms the importance of rollups for Ethereum’s long-term scalability and the need for dapps built on Ethereum to eventually migrate the majority of their operations to a more cost-effective rollup, according to a June 2 newsletter from Galaxy Digital.
Notably, activity on other ZK rollups, such as Starknet and Polygon zkEVM, is also robust. Some analysts are predicting a Zk season, which is crypto market shorthand for a period in which ZK rollups significantly outpace other market sectors.
Looks like its going to be Zk season.
Polygon zkEVM, Starknet and zkSync Era are continuing to put all time highs as TVL, Daily Active addresses and Daily transactions continue their uptrend. pic.twitter.com/vfUcnHNoPA
— Emperor Osmo🧪 (@Flowslikeosmo) June 18, 2023
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.