zkSync Era sees rapid growth, surpasses $500M in TVL

Matter Labs’ zkSync Era, a zero-knowledge (ZK) roll-up solution, is gaining traction and attracting substantial investments in the Ethereum ecosystem. Recently, it surpassed $500 million in total value locked (TVL), with a remarkable 12% increase in just one week.

For the uninitiated, zkSync Era is an Ethereum layer-2 scaling solution similar to other layer-2 networks like Optimism and Arbitrum. It utilises a technology called ZK-rollup technology for enhanced speed, cost-efficiency, and security in transactions. On the other hand, TVL is a widely recognised metric for measuring the cumulative value of digital assets locked on DeFi platforms.

zkSync Era is considered to be one of the best layer-2 networks due to its easy scalability and Ethereum Virtual Machine (EVM) compatibility, allowing developers to use smart contracts using Solidity. It currently ranks as the third-largest rollup, following Arbitrum and Optimism.

zkSync currently holds over 220,000 ETH (approximately $378.3 million), as well as 121 million USDC and 14.43 million MUTE tokens ($7.53 million value). MUTE is the native cryptocurrency for Mute, a decentralised exchange built on zkRollup technology.

To fuel the growing @zkSync Era ecosystem, Matter Labs has earmarked $1M for investments in @a16zcrypto Crypto Startup School founders. Funds will be directed toward teams utilizing zkSync Era to drive progress, prosperity, and personal freedom for all.https://t.co/6IPJdhONGs

— Matter Labs ∎ (@the_matter_labs) June 9, 2023

User engagement on zkSync has also been steadily increasing, with an average of 175,000 daily active addresses over the past four weeks. According to reports, the zkSync Era testnet reported 500,000 active accounts and nearly 9 million transactions over the whole year.

Rocketpool, a liquid staking provider, has recently partnered with zkSync Era, adding more weight to the growing trend of protocols embracing layer-2 platforms in pursuit of better scalability and low gas prices.

Industry insiders speculate that this demand for better layer-2 solutions is fueled by Ethereum core developers’ focus on implementing EIP 4844, a transaction format that reduces fees on rollups. EIP 4844 is a significant code change expected to activate in the Fall or Winter of next year during Ethereum’s Cancun/Deneb upgrade.