890.97K
3.05M
2024-05-22 09:00:00 ~ 2024-06-17 07:30:00
2024-06-17 12:00:00
Total supply13.96B
Resources
Introduction
ZKsync is an ever expanding verifiable blockchain network, secured by math.
As Ethereum’s Layer 2 ecosystem approaches a critical inflection point in 2025, the Optimism network faces pivotal questions about its long-term trajectory and token valuation through 2030. The ambitious Superchain vision represents a fundamental architectural shift that could redefine OP’s market position. This analysis examines technical fundamentals, adoption metrics, and competitive dynamics to provide evidence-based projections for Optimism’s price evolution from 2026 through 2030. Optimism Price Prediction 2026: Foundation Year for Superchain Integration The year 2026 likely represents a crucial implementation phase for Optimism’s Superchain architecture. According to blockchain analytics firm Artemis, Optimism processed approximately 450,000 daily transactions in early 2025, representing a 67% year-over-year increase. This growth trajectory suggests continued adoption momentum. However, the transition to a multi-chain Superchain model introduces both opportunities and technical challenges that will influence OP token economics. Market analysts from Messari project that successful Superchain integration could increase Optimism’s total value locked (TVL) by 40-60% during 2026. The OP token serves multiple functions within this ecosystem, including governance participation and transaction fee payments. Consequently, increased network usage typically correlates with higher token utility demand. Historical data from 2023-2024 shows that OP’s price demonstrated a 0.72 correlation coefficient with network transaction volume. Technical Analysis and Network Metrics Technical indicators provide additional context for 2026 projections. The network’s average transaction cost decreased from $0.23 to $0.17 between Q4 2024 and Q1 2025, according to L2Beat data. This reduction enhances competitiveness against alternative Layer 2 solutions. Furthermore, the number of unique addresses on Optimism surpassed 5 million in March 2025, indicating expanding user adoption. These fundamental metrics establish a baseline for reasonable 2026 price projections. Superchain Vision: Architectural Transformation and Market Implications The Superchain concept represents a paradigm shift in Layer 2 architecture. Instead of operating as an isolated scaling solution, Optimism aims to create an interconnected network of compatible chains sharing security, communication layers, and development standards. This approach potentially addresses fragmentation issues plaguing the broader Layer 2 ecosystem. Research from the Ethereum Foundation indicates that interoperable rollup networks could capture 60-75% of Ethereum’s scaling demand by 2027. Several key components define the Superchain’s value proposition: Shared Sequencing: Multiple chains utilize coordinated transaction ordering Cross-Chain Messaging: Native communication between Superchain components Unified Development Stack: Standardized tooling across participating chains Collective Governance: OP token holders influence Superchain evolution This architectural approach creates network effects that could substantially increase OP’s utility. For instance, if the Superchain attracts five additional chains by 2027, the addressable market for OP governance expands proportionally. However, successful implementation requires overcoming significant technical hurdles, particularly regarding cross-chain security and decentralized sequencing. 2027-2028 Projections: Maturation Phase and Competitive Landscape The 2027-2028 period likely represents a maturation phase for both Optimism and the broader Layer 2 sector. By this timeframe, the Superchain architecture should demonstrate measurable adoption metrics. Competing solutions like Arbitrum, zkSync, and Polygon zkEVM will have similarly advanced their own interoperability frameworks. This competitive dynamic creates a complex valuation environment for OP tokens. Analysts from Galaxy Digital suggest that Layer 2 solutions collectively could process 80% of Ethereum transactions by 2028, up from approximately 35% in early 2025. Optimism’s market share within this expanding pie will significantly influence price trajectories. The following table illustrates potential adoption scenarios: Scenario Optimism Market Share Projected TVL Implied OP Utility Conservative 15-20% $8-12B Moderate Growth Base Case 25-30% $15-20B Substantial Growth Optimistic 35-40% $25-35B Exponential Growth These scenarios incorporate variables including developer adoption rates, enterprise integration, and regulatory developments. Notably, the Base Case scenario assumes successful Superchain implementation with at least three additional chains integrated by 2027. This integration would create synergistic effects across the ecosystem. Regulatory Considerations and Institutional Adoption Regulatory clarity represents another critical variable for 2027-2028 projections. The European Union’s Markets in Crypto-Assets (MiCA) framework implementation concludes in 2026, potentially establishing clearer guidelines for Layer 2 tokens. Institutional adoption of Optimism technology for enterprise applications could accelerate following regulatory clarification. Several Fortune 500 companies have already initiated blockchain pilots using Ethereum Layer 2 solutions, according to Deloitte’s 2024 blockchain survey. 2029-2030 Horizon: Long-Term Value Drivers and Sustainability The 2029-2030 timeframe introduces additional considerations for Optimism’s valuation. By this period, Ethereum’s broader ecosystem evolution significantly influences Layer 2 dynamics. The planned Ethereum upgrades, including Verkle trees and further scalability improvements, could alter the competitive landscape. However, Layer 2 solutions will likely remain essential for supporting mass adoption applications regardless of base layer improvements. Several long-term value drivers could substantially impact OP’s price through 2030: Decentralized Sequencer Implementation: Planned transition from centralized to decentralized transaction sequencing Superchain Network Effects: Potential exponential utility growth with additional chain integrations Enterprise Adoption: Corporate utilization of Optimism for supply chain, finance, and identity applications Tokenomics Evolution: Potential adjustments to OP emission schedules and utility mechanisms Academic research from Stanford’s Blockchain Research Center suggests that successful Layer 2 networks could achieve valuation multiples between 0.1x and 0.3x of their supported economic activity by 2030. Applying this framework to Optimism requires estimating the total economic value transacting through the Superchain ecosystem. Conservative estimates suggest $200-400 billion in annual transaction volume by 2030, though these projections contain substantial uncertainty. Conclusion Optimism’s price trajectory from 2026 through 2030 fundamentally depends on successful Superchain implementation and adoption. The network’s technical architecture positions it favorably within the evolving Layer 2 landscape, but execution risks remain substantial. Market dynamics, regulatory developments, and competitive pressures will collectively determine OP’s long-term valuation. While precise price predictions contain inherent uncertainty, the Superchain vision represents a potentially transformative approach that could significantly enhance OP’s utility and value proposition throughout the latter half of this decade. Investors should monitor key metrics including Superchain integration progress, developer activity, and cross-chain transaction volumes when evaluating Optimism’s long-term potential. FAQs Q1: What is the Superchain vision and how does it differ from traditional Layer 2 solutions? The Superchain represents an interconnected network of compatible blockchain layers sharing security, communication protocols, and development standards. Unlike isolated Layer 2 solutions, it enables seamless interoperability between multiple chains while maintaining Ethereum’s security guarantees. Q2: How does the OP token function within the Optimism ecosystem? The OP token serves multiple purposes including governance participation, protocol fee payments, and potential future staking mechanisms. Token holders can vote on network upgrades, treasury allocations, and Superchain integration proposals. Q3: What are the main competitive threats to Optimism’s long-term success? Primary competitors include Arbitrum, zkSync, Polygon zkEVM, and emerging Layer 2 solutions. Additionally, Ethereum base layer improvements and alternative Layer 1 blockchains represent competitive considerations for the broader Layer 2 sector. Q4: How does regulatory uncertainty impact Optimism’s price projections? Regulatory clarity significantly influences institutional adoption and developer participation. Favorable regulations could accelerate growth, while restrictive policies might constrain certain applications or geographic expansion. Q5: What key metrics should investors monitor when evaluating Optimism’s progress? Critical metrics include total value locked (TVL), daily transaction volume, unique active addresses, developer activity, Superchain integrations, and transaction cost efficiency compared to alternatives.
zkPass (ZKP) is currently trading around $0.18 USD as of January 8, 2026, following a remarkable 55% surge after its Binance listing on January 7. The privacy-preserving oracle protocol has captured significant market attention, with trading volume expanding by approximately 65% and the token reaching an all-time high of $0.23. zkPass is a privacy-preserving oracle protocol that transforms private Web2 data into verifiable cryptographic proofs for Web3 applications. Using zkTLS technology, it enables users to prove facts from any HTTPS website without exposing sensitive information. The ZKP token has a fixed supply of 1 billion tokens, with current circulating supply of 202 million, resulting in a market cap of $37.2 million and fully diluted valuation of $184.44 million. The 2-hour chart reveals ZKP’s volatile journey since late December 2025. After launching near $0.08, the token experienced a parabolic rally to $0.20 before consolidating. A second major surge pushed ZKP to its all-time high of $0.24 on January 8, 2026, driven by the Binance listing catalyst. The price currently trades at $0.19 with the 20 EMA at $0.167 providing immediate support, while the 50 EMA at $0.149 serves as stronger support. The Supertrend indicator at $0.146 confirms the bullish trend remains intact despite recent pullback from ATH. Q1 2026 marks a critical phase with token utility activation including staking for node operators, governance voting, and proof generation rewards. The roadmap confirms deployment of an Institutional Suite MVP with banks, healthcare providers, and educational institutions. Bullish Catalysts: Staking mechanisms reducing circulating supply, exchange listings on major platforms (Coinbase, Binance, Upbit, KuCoin), and enterprise partnerships targeting compliance solutions. Bearish Pressures: Token unlocks creating supply increases, post-airdrop selling pressure, and market skepticism regarding valuation sustainability. 2026 Year-End Outlook: Conservative $0.22 | Moderate $0.35 | Optimistic $0.50 In 2027, monthly 2% unlocks begin as zkPass transitions from proof-of-concept to scaled commercial deployment. Full activation of the Compliance Suite for institutional KYC/KYB becomes operational, along with country-level partnerships for zk-verifiable credentials. Key developments include GDPR and CCPA compliance tools, integration with major DeFi protocols, and reputation scoring frameworks. The self-sovereign identity market is projected to reach $6.64 billion by 2026, continuing growth toward $1.15 trillion by 2034. 2027 Year-End Outlook: Conservative $0.35 | Moderate $0.55 | Optimistic $0.80 These years represent zkPass’s transition to a mature privacy infrastructure layer. Success depends on achieving critical mass in enterprise adoption with 20-50+ major partnerships. Integration across major blockchain ecosystems (Ethereum, Arbitrum, zkSync, Base, Optimism) becomes essential. The Privacy-Enhancing Technologies market is projected to reach $25.8 billion by 2027. Analysts project a $1-$3 price range if major dApps integrate zkPass as a standard verification layer. 2029 Year-End Outlook: Conservative $0.50 | Moderate $0.90 | Optimistic $1.50 By 2030, zkPass will be a mature protocol with established market position. The bull case ($1.50-$2.50) requires dominance as the primary privacy verification layer with hundreds of enterprise clients and government digital identity integration. The base case ($0.80-$1.20) reflects sustainable protocol revenue amid continued competition. The bear case ($0.40-$0.70) assumes limited traction beyond initial pilots. 2030 Outlook: Conservative $0.60 | Moderate $1.00 | Optimistic $2.50 Year Conservative Moderate Optimistic Key Milestones Q1 2026 $0.15 $0.22 $0.30 Token utility activation, staking launch Q2 2026 $0.18 $0.28 $0.38 Enterprise MVP deployments Q3 2026 $0.20 $0.32 $0.42 First major bank partnership Q4 2026 $0.22 $0.35 $0.50 Reputation framework launch 2027 $0.35 $0.55 $0.80 Compliance suite, country partnerships 2028 $0.40 $0.70 $1.20 DeFi integration, 50+ clients 2029 $0.50 $0.90 $1.50 Government identity pilots 2030 $0.60 $1.00 $2.50 Established infrastructure Bullish Factors: First-mover advantage in zkTLS technology, real utility in enterprise KYC/compliance, GDPR/CCPA alignment, growing privacy market, strong backing from Animoca Brands and OKX Ventures, and deflationary mechanisms through fee burns. Bearish Factors: High token inflation (8.34%-24% annually), execution risk in enterprise adoption, regulatory uncertainty, competition from Chainlink and Polygon ID, and limited operational history since late 2025 launch. Risk Management: Dollar-cost averaging recommended given high volatility. Monitor Q1 2026 utility activation, enterprise partnerships, and unlock dates (January 19, February 19). Consider 1-5% maximum portfolio allocation. zkPass presents a high-risk, high-reward opportunity in the privacy infrastructure sector. The moderate scenario projects $1.00 by 2030, assuming successful roadmap execution with steady enterprise adoption. Achieving $2.50 requires dominance across Web3 verification. However, substantial risks including token inflation, regulatory challenges, and intense competition warrant conservative position sizing. Suitable for risk-tolerant investors who believe in privacy-preserving data verification’s necessity.
The Ethereum network has taken a significant technical step ahead of the upcoming Fusaka upgrade, increasing the data capacity it can handle per block. With the update implemented on Tuesday, Ethereum increased the target capacity for data packets, called “blobs,” from 10 to 14, and the maximum blob limit from 15 to 21. Although this change may seem small, it is considered a critical development for Ethereum’s rollup-focused scaling strategy. Blobs stand out as data packets that allow rollup solutions to perform transactions off-chain at a lower cost, while relying on the Ethereum mainnet for security and finality. For Layer 2 networks such as Base, Arbitrum, Optimism, and Mantle, as well as zero-knowledge (ZK) rollups like zkSync Era, StarkNet, and Scroll, blob size is a key factor directly impacting transaction costs. @media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width: 728px; height: 90px; } } window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "d098b0a7-6bf7-478a-a0ee-0619d281a09c"; sevioads_preferences[0].adType = "banner"; sevioads_preferences[0].inventoryId = "709eacfd-152a-4aaf-80d4-86f42d7da427"; sevioads_preferences[0].accountId = "c4bfc39b-8b6a-4256-abe5-d1a851156d5c"; sevioads.push(sevioads_preferences); Rollup fees can increase rapidly during periods of limited blob capacity. Conversely, expanding capacity provides greater flexibility for Layer 2 networks, resulting in more stable transaction fees for users. On-chain data shows that blob usage is currently well below capacity and there is no congestion on the system. This indicates that Ethereum is proactively scaling before congestion occurs. This update also reflects a broader approach in Ethereum’s roadmap. The network now aims to achieve scalability by gradually adjusting parameters such as data availability and transaction throughput, rather than through large, infrequent hard forks. Ethereum co-founder Vitalik Buterin recently stated that the network has entered a new era where it can achieve higher bandwidth while maintaining decentralization. @media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width: 728px; height: 90px; } } window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "d098b0a7-6bf7-478a-a0ee-0619d281a09c"; sevioads_preferences[0].adType = "banner"; sevioads_preferences[0].inventoryId = "709eacfd-152a-4aaf-80d4-86f42d7da427"; sevioads_preferences[0].accountId = "c4bfc39b-8b6a-4256-abe5-d1a851156d5c"; sevioads.push(sevioads_preferences);
Ethereum raised the amount of data it can carry per block on Tuesday, a small but important change for the network’s rollup-heavy scaling path. The update increased the blob target to 14 from 10 and lifted the maximum blob limit to 21 from 15. Blobs are the data packets rollups publish to Ethereum so they can settle transactions cheaply offchain while still relying on Ethereum for security and finality. The move came through Ethereum’s second blob parameter-only fork, part of a broader plan to scale by steadily widening data availability rather than relying on infrequent, headline upgrades. Blobs matter because they are now one of the main cost drivers for layer-2 networks like Base, Arbitrum, Optimism, and Mantle, as well as zero-knowledge rollups such as zkSync Era, StarkNet, and Scroll. When blob space is scarce, rollup fees can spike. When blob space expands, rollups get more breathing room and users see more stable costs. For now, demand is not close to breaking the system. On-chain data shows blob usage remains well below capacity even as rollup activity continues to rise. That suggests Ethereum has meaningful headroom in its data layer today and is preemptively scaling, before congestion forces the issue. The shift also reinforces a broader change in Ethereum’s roadmap. Instead of treating scaling as a sequence of major forks that overhaul the network, Ethereum is increasingly tuning the knobs around data availability and throughput in smaller steps, then iterating. That approach aligns with Ethereum co-founder Vitalik Buterin’s earlier this week that the network is entering a new phase, where upgrades like data availability sampling and progress on zkEVM can push Ethereum toward higher bandwidth without sacrificing decentralization. The latest blob increase is not a market-moving event on its own. But it signals how Ethereum intends to scale from here: gradually, predictably and with rollups as the primary consumer of blockspace.
PANews, January 7th – According to SoSoValue data, after a period of consecutive gains, the crypto market experienced a slight overall pullback, with only the DePIN and AI sectors remaining resilient, rising by 0.04% and 1.06% respectively over the past 24 hours. Within DePIN, Render increased by 2.57% and Golem rose by 3.56%; in the AI sector, Bittensor gained 5.63% and Fartcoin climbed 5.70%. BTC fell by 1.55% to below $93,000, while ETH rose by 0.61%, remaining above $3,200. Meme, Layer2, DeFi and other sectors generally retreated, though certain tokens such as MemeCore, River, and zkSync showed active performance.
In a significant development for the Layer 2 scaling ecosystem, the Starknet network has confirmed experiencing block generation delays, triggering immediate debugging efforts by its development team to identify and resolve the underlying technical issue affecting its zero-knowledge rollup infrastructure. Starknet Block Generation Delays: Technical Breakdown and Immediate Response The Starknet Foundation officially acknowledged the block generation delays through its communication channels on Wednesday. Consequently, the network’s block production rate has slowed noticeably. The development team immediately initiated debugging procedures to pinpoint the exact cause. This situation represents a rare operational hiccup for the normally reliable Layer 2 solution. Network monitoring services first detected the anomaly approximately three hours before the official announcement. Meanwhile, transaction finality times have increased across the platform. The team maintains transparent communication throughout this incident. Starknet operates as a validity rollup, or zero-knowledge rollup, on the Ethereum blockchain. Therefore, it processes transactions off-chain before submitting cryptographic proofs to the main chain. This architecture typically enables faster and cheaper transactions than Ethereum’s base layer. However, the current block generation delays temporarily undermine these advantages. The debugging process involves examining multiple system components simultaneously. These components include the sequencer, prover, and state transition functions. Additionally, the team investigates potential issues with the Cairo programming language execution environment. Historical Context of Layer 2 Network Performance Issues Blockchain networks occasionally experience technical difficulties, despite their decentralized nature. For instance, Ethereum’s mainnet has faced congestion during peak usage periods. Similarly, other Layer 2 solutions like Arbitrum and Optimism have encountered temporary outages. However, Starknet has maintained relatively stable operations since its mainnet launch. The current block generation delays mark one of its more significant technical challenges. Comparatively, traditional financial systems experience far more frequent disruptions. Nevertheless, cryptocurrency networks face intense scrutiny regarding reliability. The blockchain industry has developed standard protocols for addressing such incidents. First, teams must quickly identify the problem’s scope. Second, they implement temporary mitigations if possible. Third, they communicate transparently with users. Fourth, they develop and deploy permanent fixes. Starknet’s team appears to follow this established framework diligently. Their debugging methodology likely involves replaying recent transactions. Additionally, they analyze system logs and performance metrics. Furthermore, they test various network configurations to isolate the issue. Recent Layer 2 Network Performance Incidents (2023-2025) Network Incident Type Duration Primary Cause Arbitrum One Sequencer Outage 2 hours Hardware Failure Optimism Mainnet Transaction Delays 4 hours Software Bug zkSync Era Prover Slowdown 6 hours Configuration Error Polygon zkEVM Block Production Halt 3 hours Network Partition Starknet (Current) Block Generation Delays Ongoing Under Investigation Technical Architecture Vulnerabilities and Debugging Approaches Zero-knowledge rollups like Starknet involve complex cryptographic computations. Specifically, they generate STARK proofs to validate transaction batches. These proofs require significant computational resources. Therefore, any disruption in this proving process can cause block generation delays. The debugging team likely examines several potential failure points. These include: Sequencer performance: The component responsible for ordering transactions Prover efficiency: The system generating cryptographic proofs State synchronization: Coordination between Layer 2 and Ethereum mainnet Node software: Potential bugs in the latest client implementations Network connectivity: Issues with peer-to-peer communication between nodes Previous debugging experiences in similar networks provide valuable reference points. For example, the zkSync team documented their debugging methodology after a 2024 incident. Their approach involved systematic elimination of potential causes. Similarly, Starknet’s developers probably employ comparable diagnostic techniques. They might use specialized monitoring tools designed for zero-knowledge systems. Additionally, they could implement temporary workarounds while pursuing permanent solutions. Market Impact and User Experience Considerations The block generation delays have immediate practical consequences for Starknet users. Transactions take longer to process during this period. Some decentralized applications might experience functionality limitations. However, fund safety remains unaffected due to Starknet’s cryptographic guarantees. The Ethereum mainnet still secures all assets. Therefore, users need not worry about losing funds. Nevertheless, the delays inconvenience active traders and DeFi participants. DEX arbitrage opportunities might become less feasible temporarily. Market data shows minimal price impact on STRK tokens initially. The cryptocurrency market often reacts moderately to technical issues. Investors generally understand that blockchain networks experience occasional difficulties. However, prolonged delays could affect market sentiment. Historical patterns suggest quick recovery after resolution. For instance, similar incidents on competing networks resulted in temporary price dips. Prices typically rebound once normal operations resume. The Starknet Foundation’s transparent communication helps maintain confidence. Industry Expert Perspectives on Network Reliability Blockchain infrastructure experts emphasize the importance of robust debugging processes. Dr. Elena Rodriguez, a distributed systems researcher at Stanford University, explains: “Layer 2 networks face unique reliability challenges. They must maintain synchronization with multiple systems simultaneously. Debugging requires specialized knowledge of both cryptography and distributed systems. Teams that document and share their debugging experiences contribute valuable knowledge to the entire ecosystem.” Similarly, Michael Chen, lead engineer at a blockchain monitoring firm, notes: “We observe Starknet’s block production metrics continuously. The current delays represent a deviation from normal patterns. However, the network’s architecture contains multiple redundancy mechanisms. The debugging team likely leverages these during their investigation. Successful resolution will demonstrate the network’s resilience.” These expert insights highlight the technical sophistication required for effective debugging. Conclusion The Starknet block generation delays represent a significant technical challenge for the Layer 2 scaling solution. The development team’s prompt debugging efforts demonstrate professional incident response protocols. Historical context shows that similar networks have successfully overcome comparable issues. The transparent communication approach maintains user confidence during the resolution process. Ultimately, this incident provides valuable learning opportunities for the entire blockchain ecosystem. Network reliability remains paramount for mainstream adoption. Therefore, thorough debugging and comprehensive post-mortem analysis will strengthen Starknet’s infrastructure against future challenges. FAQs Q1: What exactly are Starknet block generation delays? The delays refer to slower-than-normal production of new blocks on the Starknet Layer 2 network. This slowdown affects transaction processing times and network responsiveness while the team investigates the underlying technical cause. Q2: Are user funds at risk during these delays? No, user funds remain secure. Starknet’s architecture ensures all assets are cryptographically secured on the Ethereum mainnet. The delays affect transaction speed but not fund safety or blockchain integrity. Q3: How long do such debugging processes typically take? Debugging duration varies based on issue complexity. Similar Layer 2 incidents have resolved within 2-12 hours historically. The Starknet team has not provided a specific timeline but maintains regular updates. Q4: Can users still conduct transactions during the delays? Yes, but with longer confirmation times. The network continues operating at reduced capacity. Some decentralized applications might implement rate limiting or temporary feature restrictions. Q5: How does this incident compare to other Layer 2 network issues? This represents a moderate technical incident within normal expectations for blockchain networks. Other major Layer 2 solutions have experienced similar challenges, with most resolving within hours without significant long-term impact.
Deri Protocol, a well-known decentralized derivatives exchange, has announced the removal of support for key networks. The move occurs after community voting to sunset support for zkSync Era, Polygon zkEVM, and Manta Network. As per Deri Protocol’s official social X announcement, the platform is doing this because of the consistently lower activity. Hence, the consumers with liquidity or open positions on the respective networks must migrate them to some other compatible chains promptly. And the vote has passed! The team will proceed with removing support for @MantaNetwork, @0xPolygon zkEVM, and @zksync Era; users with open positions or liquidity on these networks should promptly migrate their positions or funds to another supported chain. Results:… — Deri Protocol (@DeriProtocol) Deri Protocol Removes Support for zkSync Era, Polygon zkEVM as Community Passes Proposal After the successful voting for the removal of support for zkSync Era, Polygon zkEVM, and Manta Network, Deri Protocol is officially executing this move. This will impact the consumers having funds or open positions on these ecosystems. Thus, to avoid any issues, they will need to shift such positions or liquidity to the other supported chains when prompted. Following the completion of removal, the consumers will not have any capability to add liquidity or trade it through the above-mentioned networks. Nonetheless, the operations on the rest of the supported blockchains will keep working unimpacted. This development is occurring at a time when the platform has been experiencing considerably low activity. While discussing this, the platform’s team has appreciated the support and participation of those holding $DERI in the latest voting process. Reducing Undue Costs to Ensure Ecosystem Sustainability According to Deri Protocol, the voting on the proposal to eliminate the backing for the aforementioned networks concluded on the 31st of December. Now, the platform will remove support for zkSync Era, Polygon zkEVM, and Manta Network. With such moves, Deri Protocol is reportedly endeavoring to guarantee its ecosystem sustainability and eliminate undue fund expenditure.
Orexn, a launch space for early Web3 startups, today announced a strategic partnership with KaratDAO, a decentralized data network that gives users control over their Web2 and Web3 data through applications of zkSync and MPC technologies. With this collaboration, Orexn and KaratDAO integrated their respective networks (decentralized crypto launch space and identity management infrastructure) to redefine how Orexn users interact with Web3 assets and applications, and at the same time broaden scalability, reach, and utility within the two digital platforms. Orexn is a decentralized cryptocurrency launch space that gives customers early access to upcoming token launches, potential crypto projects, launchpools, and quests before they go public. It is a wide Web3 ecosystem that enables people to discover and engage with new projects and earn crypto opportunities through participating in various activities, including yield farming, gamified quests, and several others. 📢 Orexn x KaratDAO: New Partnership Announcement We’re excited to partner with — the largest SocialFi protocol on ZKSync, bridging Web3 & Web2 identities in a decentralized ecosystem. 🎉 Together, we’re empowering trust-based interactions, privacy-first identity, and… pic.twitter.com/CDwtk1PtjI — Orexn (@OrexnX) December 28, 2025 Orexn Advancing Security and Privacy Using KaratDAO’s zkSync By incorporating KaratDAO’s zkSync and MPC technologies into its launch space, Orexn aims to advance the functionality and effectiveness of its launchpad platform. Founded in 2022, KaratDAO is a decentralized data identity network that runs a bilateral service data marketplace, which enables people to manage and control their personal data across Web2 and Web3 environments while allowing them to earn rewards. The network aims to improve digital ownership and support the advancement of DApps (decentralized applications) using its tech devices. With its MPC (multi-party computation) and ZKP (zero-knowledge proofs) technologies, Karat empowers users with privacy and security in data exchange. By integrating KaratDAO’s decentralized data infrastructure (powered by MPC and ZK technologies) into its launchpad, Orexn introduces products that not just enhance user experience in its launchpad but also give its customers advanced rewards. The integration of Karat’s networks and its MPC and ZK technologies means that Orexn users can now safely manage their data across Web2 and Web3 ecosystems and even trade their data securely and permissionlessly. Also, powered by KaratDAO’s security and privacy technologies, the collaboration implies that Orexn users can now store and move their assets across multiple chains securely while preserving their confidentiality. Enhancing Liquidity Across Web3 Networks The alliance between Orexn and KaratDAO is more than a tech upgrade for Orexn. It is part of a significant advancement in the Web3 space as the two platforms created a new, functioning, interoperable, and secure ecosystem within their networks. This means that KaratDAO users can now access Web3 products on Orexn’s crypto launchpad platform. The tech combination revolutionizes the boundaries of Web3 by creating new opportunities for users, improving their engagement in the digital landscape, and connecting them with the traditional Web2 environment and the advanced Web3’s decentralized world. With the partnership, both KaratDAO and Orexn show their commitment to widening their market accessibility within Web3 using their respective tech capabilities.
Layer 1 tokens will face structural pressure in 2025. Bitcoin expands its dominance as users migrate from networks. Fragile tokenomics accelerates the fall of altcoins. Layer 1 blockchain tokens faced a difficult year in 2025, with significant price drops and a shrinking user base, while Bitcoin maintained relative strength and expanded its market dominance. This assessment is part of a year-end report from OAK Research, which points to relevant changes in investor behavior and network usage. According to the study, the pressure on layer 1 altcoins exposed structural weaknesses, especially in projects that failed to demonstrate consistent economic value generation. The market began to penalize protocols with limited use, even those that maintained technical activity and continuous development. Usage metrics reinforce this trend. The total number of monthly active users fell by more than 25% among the main blockchains analyzed. Solana registered the largest decline, losing approximately 94 million users, representing a reduction of over 60%. Conversely, BNB Chain nearly tripled its user base, attracting users who migrated from other networks in search of lower costs and greater operational predictability. Related Stories No Content Available In the tier 2 segment, the scenario was also uneven. Base stood out for its growth in Total Value Locked (TVL), driven by distribution via Coinbase. Optimism, on the other hand, faced a significant capital contraction as resources were redirected to competing solutions. Other tokens, such as zkSync Era, Polygon, and Arbitrum, ended the year with significant losses, despite technical advancements. The report identified three key factors for the negative performance: excessively leveraged tokenomics, with constant unlock schedules; a lack of efficient value capture mechanisms that connect network usage to token demand; and institutional preference for Bitcoin and Ethereum over lower-capitalization assets. Even with the devaluation of tokens, developer activity remained strong in some ecosystems. Data cited from Electric Capital shows that the EVM architecture continues to lead in the number of developers, while Bitcoin has seen the largest growth in full-time professionals in the last two years. Solana and the SVM ecosystem have also maintained continuous technical expansion. In terms of revenue, stablecoin issuers and derivatives platforms dominated the landscape. Tether and Circle concentrated a large portion of the sector's annual income, while generic layer 1 and layer 2 networks, without clear differentiation, lost relevance. The outlook for 2026 suggests consolidation, with greater capital concentration in protocols capable of demonstrating real economic utility and sustainable revenue generation models. Tags: Layer 1
Key Points UBS has completed the world’s first live, in-production tokenized fund transaction. The transaction involved uMINT, a tokenized money market fund operating on the Ethereum blockchain. UBS, the Swiss banking giant, has made history by successfully executing the world’s first live, in-production tokenized fund transaction. This transaction was carried out end-to-end, involving subscription and redemption requests for a tokenized money market fund, marking a significant step in the institutional adoption of blockchain-based financial products. Details of the Transaction The transaction involved the UBS USD Money Market Investment Fund Token, also known as uMINT, which operates on the Ethereum blockchain. DigiFT, an on-chain fund distributor, played a crucial role in the transaction, utilizing the Chainlink Digital Transfer Agent technical standard to handle the fund operations. Both subscription and redemption requests were processed through this automated system. The Chainlink DTA standard integrates several technologies, including Chainlink Runtime Environment, Cross-Chain Interoperability Protocol, Automated Compliance Engine, and NAVLink. These components allow Chainlink’s oracle network to automate fund lifecycle operations such as order processing, execution, settlement, and data synchronization between on-chain and off-chain systems. The standard supports three settlement models: Offchain, Local Onchain, and Cross-chain Onchain. The Chainlink CCIP integration has been deployed across multiple blockchain applications in 2025. UBS and Tokenization UBS developed this capability through its UBS Tokenize service, which also focuses on tokenizing bonds and structured products. The bank currently manages $6.9 trillion in invested assets as of the third quarter of 2025 and operates as the leading universal bank in Switzerland and a principal global wealth manager. This transaction is a continuation of UBS’s work with Chainlink under the Monetary Authority of Singapore’s Project Guardian initiative. Earlier in 2025, UBS tested on zkSync for its Key4 Gold service proof-of-concept. This transaction represents UBS’s first live deployment of tokenized fund operations on a public blockchain. DigiFT processed the subscription and redemption orders using the DTA standard’s automated compliance and settlement features. The system handled order taking, execution, and final settlement without manual intervention. Despite the recent volatility in Chainlink (LINK) price, the growing institutional adoption of its infrastructure is evident.
ZKsync will end Etherscan support for the ZKsync Era on January 7, 2026. Block, transaction, and contract data will move fully to the ZKsync native explorer. Developers relying on Etherscan APIs must migrate before that date. According to a GitHub post, ZKsync no longer fits standard EVM assumptions. Interop transactions, cross-chain bundles, Gateway settlement, and new compilers like solx require an explorer that understands the protocol at a native level. Etherscan cannot index these features correctly. Dropping Etherscan Support ZKsync has evolved into a network of interconnected chains. Transactions can now span multiple ZKsync chains and settle through flexible paths that may include the ZKsync Gateway or Ethereum directly. This structure breaks the single-chain model most explorers rely on. Etherscan support for ZKsync Era will be discontinued on Jan 7th, 2026. This allows us to prioritize the ZKsync native explorer and support protocol-native features like interop transactions, Gateway settlement, and additional EVM compilers like solx. ZKsync native explorer →… — ZKsync Developers (∎, ∆) (@zkSyncDevs) December 22, 2025 Native awareness of Interop (communication layer) and settlement paths allows the ZKsync explorer to show execution context, settlement flow, and cross-chain state in one view. It is important to note that this decision represents where ZKsync is headed in 2026, towards fewer external dependencies, more protocol-level coordination. Token Utility Moves from Theory to Design ZKsync leadership spent 2025 laying groundwork for ZK token utility beyond governance, according to Alex Gluchowski, the co-founder and CEO of Matter Labs, the firm behind ZKsync Proposals released this year were focused on interoperability and off-chain licensing as value sources tied directly to network usage. The logic is simple. As private and public ZKsync chains coordinate, fees emerge at the protocol layer. Governance proposals create the buy-and-allocate paths where fees and licensing revenue could support burns, staking rewards, and ecosystem funding. Token value is now linked to how much coordination the network handles, not just how many votes the token controls. Utility through Enterprise Upgrades ZKsync spent 2025 pushing privacy into production. Prividium is a result of those efforts and allows institutions to run private chains. As per a Messari research analyst, Prividium “keeps execution and state private while still producing validity proofs that are settled on Ethereum, providing public verifiability.” On the other hand, the Atlas upgrade tightened execution, proving, and Ethereum verification into a faster pipeline, Gluchowski noted in his 2025 recap. The target is over 15,000 transactions per second, near one-second finality, and extremely low proving costs, revealed the analyst’s report. Airbender is also live. It reduces hardware needs and provisioning time. Gluchowski added that banks, asset managers, consumer apps, and regional chains have launched production deployments throughout the year. As ZKsync enters 2026 with Prividium, Interop, and Atlas, the ZK token has crashed more than 90% from its all-time high seen over two years ago at $0.3285. At press time, the altcoin was trading at $0.027 but the new changes could form a bottom for ZK’s falling prices. next A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books. Share:
Quick Breakdown Matter Labs has launched ZKsync Managed Services, extending its operational expertise from the ZKsync ecosystem into a managed infrastructure. The service is designed to address the operational complexity of running production-grade blockchain infrastructure. ZKsync Managed Services allows organizations to retain full sovereignty over their custom ZK Stack chains while outsourcing reliability, performance, security, and ongoing infrastructure management to Matter Labs. Matter Labs announced the launch of ZKsync Managed Services, a managed infrastructure offering aimed at enterprises deploying custom zero-knowledge blockchains. The product extends Matter Labs’ experience operating the ZKsync ecosystem into a service that handles the operational burden of running ZK-based networks for external teams. Enterprises and financial institutions are increasingly adopting blockchain technology to automate workflows, coordinate value, and develop products that operate across organizational boundaries. Yet for many organizations, running production-grade blockchain infrastructure remains a major barrier, requiring specialized operational expertise that most teams do not have in-house. Announcing ZKsync Managed Services from Matter Labs. Dedicated, production‑grade ZK Stack chains, plus RPC, block explorer, indexers, and event delivery. Operated 24/7 by the team behind the protocol. Blog: Website: pic.twitter.com/moB55z625t — ZKsync (@zksync) December 15, 2025 Operational complexity slows enterprise blockchain adoption Deploying a blockchain network at production scale involves far more than writing smart contracts. Organizations must operate sequencing and proving infrastructure, manage security and monitoring, ensure regulatory compliance, and integrate blockchain systems with existing enterprise platforms. For many teams, these requirements have led to delayed launches, rising costs, and increased operational risk. Industry participants note that enterprises often find themselves responsible for infrastructure tasks outside their core competencies, diverting resources away from product development and business outcomes. ZKsync managed services target enterprise-grade deployments According to Matter Labs, ZKsync Managed Services is designed for teams that want the benefits of dedicated ZK Stack chains without managing day-to-day operations. The offering includes ZK-chains-as-a-service, high-performance RPC infrastructure, event delivery and webhooks, and supporting tooling, all operated by the Matter Labs team. Under the model, customers retain sovereignty and control over their networks, while Matter Labs manages security, reliability, performance, and ongoing maintenance. The company said the service is intended to support production-grade deployments that meet enterprise standards for uptime, resilience, and operational consistency. In another development, zkSync Lite, the legacy ZKsync network that processed more than one billion transactions, will be phased out. The move follows a sustained decline in activity since the launch of zkSync Era in March 2023, which now serves as the primary ZKsync platform.
Buenos Aires has a distinct frequency. It is a city where European grandeur collides with Latin American intensity, a place where economic theory is not an abstract concept discussed in ivory towers, but a visceral, daily struggle for preservation. It is, therefore, no accident that this metropolis was chosen to host Devconnect 2025. The backdrop of Argentina, a country synonymous with both monetary volatility and grassroots crypto adoption, provided the perfect stage for an industry that is finally growing up. If previous years in the crypto cycle were defined by noise, spectacle, and the blinding lights of speculative mania, reminiscent of a Las Vegas casino floor, Buenos Aires offered a stark, sobering contrast. The air didn’t smell of “easy money” and vaporware; it smelled of strong coffee and serious engineering. Here, the narrative shifted. We are no longer building toys for the bored and wealthy; we are building infrastructure for a world that is cracking at the seams. To navigate this profound shift, we enlisted the insights of key industry architects: Arthur Firstov (Mercuryo CBO), who focused on the privacy mandate; Vivien Lin (BingX CPO), who detailed the integration of AI into trading ecosystems; and Ivan Machena (8lends CCO), who provided a vital assessment of the layer-2 adoption landscape. Through extensive back-channel conversations with these leaders, a clear picture emerges. We are entering a new epoch. This is the story of how privacy became a mandate, how Artificial Intelligence is demanding a seat at the financial table, and how global diversity finally shattered the myth of the “archetypal user.” The Privacy Mandate, From Feature to Foundation The most potent message from Buenos Aires was not broadcast via fireworks or celebrity endorsements. It was whispered in the dense fabric of technical workshops and crowded hacker houses. The message is simple: transparency is a feature, but total exposure is a flaw. In Bangkok, at previous gatherings, privacy was merely a “track”, a side room visited by cypherpunks and idealists. In Buenos Aires, it was the main event. The industry has collectively realized that without privacy, there is no mass adoption, only mass surveillance. Arthur Firstov, the Chief Business Officer of Mercuryo, captured this paradigm shift perfectly. Reflecting on the dominant research areas of the event, Firstov noted a distinct change in temperature. “Privacy was the defining theme,” Firstov asserts, before continuing: “Compared to Bangkok, where privacy was just one important track, Buenos Aires elevated it to the main stage.” His observation aligns with a sentiment that permeated every venue of the conference. A phrase began circulating around the co-working spaces and lecture halls, becoming the unofficial motto of Devconnect 2025: “If your wallet is not privacy-preserving by design, it is legacy.” This is not a technological fad, it is a response to an increasingly transparent world where financial data is weaponized. Firstov highlights that the tone was set from the top, with Vitalik Buterin offering a “full walkthrough of his personal privacy stack, from OS and mobile devices to private RPC.” But the crucial evolution lies in how this technology is now being packaged. It is no longer about command-line interfaces for the elite; it is about invisibility. Firstov explains: “Builders focused on stealth addresses, smart AA [Account Abstraction] patterns, selective disclosures, and ‘creating better defaults so users do not even notice how much complexity is being handled beneath the surface.” This “invisibility” is the holy grail. The user does not want to understand zero-knowledge proofs; they simply want to know their bank balance isn’t public property. Alongside this push for privacy, Firstov identified a pragmatic evolution in DeFi: the rise of “preconfirmations for instant-feeling stablecoin payments” and new yield surfaces that offer “simple, ‘money-market style’ experiences without going full degen.” The industry is moving away from 10,000% APY Ponzi schemes toward boring, reliable, private finance. The “Black Box” Controversy, Who Do We Trust? However, no revolution is without its internal schisms. While the consensus on the need for privacy was absolute, the method of achieving it sparked the most heated technical debates of the week. The eye of the storm was the reliance on Trusted Execution Environments (TEEs), hardware-based secure enclaves. Is the future of privacy found in cryptographic math or in silicon manufacturing? Firstov describes this division as the “most unexpected or controversial technical debate” of the event. On one side stood the pragmatists. He notes: “One camp argued that TEEs are ‘practically necessary for high-throughput, low-latency, and private computation’, particularly for private settlement, derivatives strategies, and agent-based execution.” The argument is compelling: if we want Wall Street speeds on the blockchain, math alone might be too slow. We need hardware acceleration. But the opposition was loud, principled, and deeply skeptical. Firstov relays their warning: “If the trust model becomes ‘trust this black-box server in a data center,’ then crypto is not improving much over traditional finance.” If we simply replace a bank’s server with Intel’s SGX enclave, have we actually decentralized anything? This led to an unresolved meta-question that will likely define research priorities for the rest of the decade: “How much of the world’s stablecoin and payment rails are we comfortable running on opaque hardware… and what does ‘trust-minimized enough’ actually mean in that context?” The Rise of the Machines: AI as the New Financial Architect While cryptographers sparred over hardware trust, another titan was quietly integrating itself into the crypto stack: Artificial Intelligence. Devconnect 2025 wasn’t just about the ledger; it was about the inevitable marriage of the decentralized database and the autonomous brain. Vivien Lin, Chief Product Officer and Head of BingX Labs, brought a perspective from the front lines of centralized exchanges (CEXs), which are rapidly morphing into something far more complex. For her, the primary theme was undeniable. Lin says: “The primary theme for me was the integration of AI into exchange infrastructure and the realization that exchanges are evolving into full financial ecosystems, not just trading applications.” She paints a picture of a future where AI acts as the connective tissue of finance. “Builders were focused on how AI can unify trading, custody, payments, risk management, and user intelligence into a single ‘super app’ experience.” However, much like the TEE debate in the privacy sector, the integration of AI brings its own security paradox. How do you trust an AI with your life savings? Lin notes a strong push toward “secure, verifiable systems, including privacy-preserving compute and on-chain proofs, that ensure AI-driven features don’t compromise user data or fund safety.” The goal is to create ecosystems that are “both intelligent and deeply secure, giving users more automation and context without sacrificing trust.” But the most fascinating friction point, according to Lin, wasn’t about capability, it was about autonomy. “The major friction point was how much autonomy AI agents should have in trading environments,” Lin explains. The debate split the room. She adds: “Some developers argued that agents should manage liquidity, rebalance portfolios, or place orders without human oversight. Others warned that giving AI unrestricted access to execution layers could create systemic risk.” The core disagreement touches on the very nature of human agency in markets: “Should AI be a co-pilot for traders or a fully autonomous participant in market structure?” In Buenos Aires, the consensus seemed to be shifting toward autonomy, provided the guardrails of cryptography are strong enough to hold it. Geography is Destiny, Lessons from the Global South Perhaps the most transformative aspect of Devconnect 2025 was the location itself. Hosting this event in Argentina forced the global developer community to touch grass. While Silicon Valley developers obsess over optimizing code for milliseconds, the people of Buenos Aires obsess over preserving the value of their labor against inflation. Arthur Firstov observed how this radical diversity shifted the conversation from theoretical scaling to survival tools. “Devconnect brought radically different user priorities into the same room,” he says. “Latin American teams highlighted everyday use cases such as ‘wallets on low-cost smartphones’ and rent or payroll paid in stablecoins,” Firstov notes, further adding: “Contrast this with the Asian and US infrastructure teams, who remained focused on “perpetual futures, routing, MEV, and latency.” This collision of worlds forced a synthesis. The conversation moved away from simple “Transactions Per Second” (TPS) bragging rights toward UX and practical deployment. Firstov lists the questions that actually matter now: “How can smart wallets hide complexity so users feel like they are using a normal fintech app? How do we support both ‘high-frequency trading flows and monthly salary payments’ without compromising trust or security?” The biggest realization? “There is no single archetypal user in crypto.” Vivien Lin echoes this sentiment, noting how the Argentine presence grounded the high-flying technical debates. “The diversity of developers, especially strong representation from Argentina, shifted the discussion toward real adoption challenges on the ground, not just theoretical scaling.” Argentine builders didn’t want to talk about the philosophy of money; they wanted to solve immediate problems. Lin explains: “Argentine builders raised issues around inflation, capital controls, and the need for fast settlement rails that work reliably in volatile economies.” This expanded the scope of what an exchange should be, pushing for “AI-powered ecosystems that address both local constraints and broader challenges such as compliance fragmentation, cross-border liquidity, and mobile-first onboarding.” What is Actually Being Built? Infrastructure Over Hype Stepping away from the philosophical and geographical, we must ask: where are the builders actually deploying code? Ivan Machena, Chief Communication Officer at 8lends, provides a sober look at the landscape. The era of “ghost chains”, blockchains with high valuations but no users, is ending. The focus is now on ecosystems that support real products. “Looking at the broader industry conversations happening around Devconnect,” Machena observes, “several layer-2 and application-layer projects continue to attract strong builder interest.” On the consumer front, Machena highlights Base. It is frequently cited for its “rapid growth and smooth onboarding infrastructure,” effectively becoming the gateway for the retail user. In the DeFi segment, Arbitrum retains its crown as the “preferred choice thanks to its mature ecosystem and composability,” while Polygon remains a staple for teams seeking balance. However, Machena notes a migration toward the technically superior. “There is also increasing attention toward zk-based solutions such as zkSync and StarkNet, especially from teams building more technically demanding or long-term products. The trend is clear: Discussions around Devconnect points toward L2s that already support real products, not just experimental concepts.” Arthur Firstov adds another layer to this adoption map, pointing toward the privacy and “agent-native” sectors. He identifies Aztec as drawing “serious attention as a privacy-first environment where products can be ‘private by default, selectively transparent where necessary’.” Crucially, Firstov highlights Privacy Pools as the bridge between the cypherpunk ethos and institutional reality. It emerged as a “compliance-aware solution… a ‘practical answer to what privacy looks like when regulators and serious capital must be comfortable with it’.” Furthermore, the physical world is coming on-chain. Firstov notes a trend of teams building DePIN (Decentralized Physical Infrastructure Networks) style storage and compute services, paid for in stablecoins, “aiming to make crypto feel like traditional cloud APIs.” Outlook 2026: From Casino to Cathedral As the attendees of Devconnect 2025 disperse from Buenos Aires, returning to their respective corners of the globe, the mood is undeniably different. The industry is maturing. The cultural ethos of the event, small, technical, community-led sessions rather than massive marketing spectacles is shaping the narrative for the coming year. Arthur Firstov predicts a fundamental pivot in how we tell the story of crypto: “Expect 2026 narratives to reflect that shift, ‘infrastructure story instead of casino story,’ ‘stablecoins as the front end of crypto,’ and privacy as table stakes.” This is a vision of a world where crypto ceases to be a synonym for gambling and becomes the invisible, robust plumbing of the global financial system. The questions are no longer about token prices. As Firstov puts it, the growing question is: “Which Web2–Web3 integrations will actually ship and move the needle on real users?” Vivien Lin agrees, seeing the future in interconnected ecosystems rather than walled gardens. “It reinforced the view that the future of crypto trading will be ecosystem-first. This ethos pushes the industry toward interoperable, AI-powered trading ecosystems where liquidity, identity, execution, and strategy automation become increasingly unified as we move into 2026.” Buenos Aires was a stress test for the soul of crypto. The industry passed, not by offering easy answers, but by finally asking the right, difficult questions. We leave with fewer illusions, but with better tools. The “Casino Story” is dead; the “Infrastructure Story” has begun. And for the first time in a long time, it feels like we are building something that will last.
Quick Breakdown zkSync Lite, the original ZK rollup from 2020, processes fewer than 200 transactions per day before its planned 2026 retirement. $50 million in user funds stay accessible with full Ethereum L1 withdrawal support during transition. The focus shifts to the zkSync Era, ZK Stack chains, and cross-chain upgrades, such as the recent Atlas activation. US Bank crypto entry signals regulatory thaw zkSync Lite, the legacy network that processed over one billion transactions since its launch, is scheduled to be phased out. The end of support for zkSync Lite, announced by zkSync in an X post, follows a sharp decline in daily activity since the introduction of zkSync Era, the full zkEVM in March 2023. 📌In 2026, we plan to deprecate ZKsync Lite (aka ZKsync 1.0), the original ZK-rollup we launched on Ethereum. This is a planned, orderly sunset for a system that has served its purpose and does not affect any other ZKsync systems. — ZKsync (@zksync) December 7, 2025 Users hold around $50 million in bridged assets, but withdrawals to Ethereum Layer 1 remain open, with detailed migration steps set for early 2026 release to prevent bridge congestion. The shutdown remains isolated to zkSync Lite and has no impact on Era or ZK Stack-built chains. ZK ecosystem builds a multi-chain future. ZKsync restructured its governance token to give it clearer economic utility and better value capture across the zero-knowledge ecosystem. Under the new model, the token is tied directly to multiple revenue streams, from protocol fees on-chain to licensing fees from enterprise use off-chain. All of this will be funneled through a governance-managed system to support development, security, and community incentives, with the goal of keeping the network sustainable and independent over the long run. Recent upgrades underscore the pivot: Atlas went live on December 5 with native cross-chain messaging across ZK networks, boosting daily active users as apps adapt. An October proof-of-performance boost added privacy tools for tokenized assets and high-throughput use cases. Meanwhile, on May 13, 2025, a security incident compromised the official X accounts of ZKsync and its developer, Matter Labs, through a phishing scam. Hackers took control of the accounts and disseminated fraudulent claims, including a false report that the company was under investigation by the U.S. Securities and Exchange Commission (SEC). The attackers also linked these deceptive posts to a counterfeit airdrop intended as a phishing trap for followers. This sophisticated social engineering attack briefly impacted the market, causing a temporary decline in the price of ZKsync’s native token, ZK. Matter Labs quickly confirmed that the posts were fake, announced that they had fully recovered control of their accounts, and is currently investigating the cause of the compromise, which may have been facilitated through delegated third-party accounts.
zkSync has started preparing the retirement of its original ZK-rollup, setting up a transition to more advanced infrastructure across its network. Summary zkSync Lite will be deprecated in 2026 under a planned shutdown process. Funds remain safe, and a migration guide will arrive next year. The ecosystem is focusing on zkSync Era, the ZK Stack, and cross-chain upgrades. In a Dec. 7 post on X, zkSync said it plans to deprecate zkSync Lite, also known as zkSync 1.0, sometime in 2026. The team called it a planned and orderly shutdown for a system that launched in 2020 and helped validate many of the ideas behind modern zero-knowledge rollups. Transition from legacy infrastructure Nothing changes for users today. zkSync ( ZK ) Lite remains online, withdrawals to Ethereum ( ETH ) continue to work, and funds are safe. The team will publish a full deprecation timeline and migration guide next year, including steps for users and developers to move to zkSync Era or other chains built with the ZK Stack. 📌In 2026, we plan to deprecate ZKsync Lite (aka ZKsync 1.0), the original ZK-rollup we launched on Ethereum. This is a planned, orderly sunset for a system that has served its purpose and does not affect any other ZKsync systems. — ZKsync (@zksync) December 7, 2025 zkSync Lite processed more than a billion transactions during its lifetime but now sees fewer than 200 daily transactions. The team said maintaining legacy infrastructure no longer aligns with its focus on Era, Prividiums, and a broader network of ZK chains. Around $50 million in assets are currently bridged to zkSync Lite. These funds remain accessible, and users can withdraw to Ethereum at any time. The team recommends preparing for migration once guidance is released to avoid last-minute congestion in 2026. A comprehensive transition plan is expected in early 2026. zkSync said the move does not affect zkSync Era or any chain built with the ZK Stack and is strictly limited to the first-generation rollup. zkSync’s expansion continues toward a multi-chain ZK network The decision comes alongside technical upgrades across the zkSync ecosystem. On Dec. 5, the Atlas upgrade activated, enabling native cross-chain interoperability across all ZK chains in the network without relying on external bridges. Early activity data shows a rise in daily active users as apps begin to adopt the new messaging standard. A prior upgrade in October improved proof performance and introduced privacy features designed for high-throughput use cases such as tokenized assets. The team says these systems reflect the future direction for ZK infrastructure, with zkSync Lite having already completed its role as a proof-of-concept. Ethereum co-founder Vitalik Buterin recently highlighted zkSync’s ZK roadmap as a key part of Ethereum’s long-term scaling strategy, pointing to the growing role of ZK proofs in decentralized finance and tokenization. With the planned sunset, zkSync is closing the chapter on its earliest rollup and concentrating its resources on what it calls a “network of ZK chains” built on unified cryptography.
Ethereum Fusaka upgrade set to go live today. ETH enthusiasts are eager to see the positive impact of this launch. What changes can ETheruem network users expect? The crypto market remains in a steady state of what seems to be a sideways movement towards a gradual recovery phase that could extend into a bullish price rally and an extended bull market in a 5-year bull cycle. This, alongside several other factors, spur bullish sentiments. In detail, the Ethereum Fusaka upgrade set to go live today is one of the most bullish signs in the market at the moment. What changes can we expect to see? Ethereum Fusaka Upgrade Set to Go Live The crypto community, especially ETH enthusiasts, are excited to see the fruits of the Ethereum Fusaka upgrade expected to go live today. As we can see from the post below, it stresses how important and big this upgrade is for the Ethereum network and ETH. For instance, the last major upgrade (Pectra) pushed ETH up 50% in one week, and Fusaka is a much bigger upgrade than Pectra. ETHEREUM'S FUSAKA UPGRADE WILL GO LIVE TODAY 🚨 And most people still don’t understand how big this is for $ETH . The last major upgrade (Pectra) pushed ETH up 50% in one week and Fusaka is a much bigger upgrade than Pectra. Ethereum has one major problem right now: L2 data… pic.twitter.com/kbutqtxOTU — Crypto Rover (@cryptorover) December 3, 2025 The post goes on to elaborate on the impact that this upgrade is set to bring. To start off, it highlights Ethereum’s one major problem right now: L2 data congestion. Rollups like Base, Arbitrum, OP and zkSync all push their data back to Ethereum , but today every node must download the entire blob file to verify it. This slows the network, increases bandwidth use, and keeps L2 fees higher than they should be. Fusaka fixes this in a very simple way. First, block capacity increases from 45 million to 150 million gas. This instantly gives Ethereum almost 3× more room for transactions, smart contracts, and rollup data. More room means more activity, and more activity means more ETH burned. Second, Fusaka adds PeerDAS . Instead of downloading full blob files, nodes now check small random pieces. Impact of Fusaka on Ethereum and Crypto This reduces load on nodes, lowers costs for rollups, and makes Ethereum handle far more data without slowing down. Third, Fusaka adds Verkle Trees, which make Ethereum’s state smaller and easier to verify. This means nodes sync faster, storage becomes lighter, and Ethereum becomes easier to operate long-term. What does this mean for everyday users? Faster confirmations. More stable gas fees. Cheaper L2 transactions. Less congestion during busy hours. Everything simply feels smoother without users changing anything. For L2s, the impact is even larger. Rollups depend on blob space. Fusaka increases that space and reduces verification costs at the same time. This lets L2s scale far faster, which means more transactions, more activity, and more ETH being used, and every L2 transaction eventually settles on Ethereum, which burns ETH. More rollup activity leads to more settlement, which means more burn, and stronger ETH economics . This is why Fusaka is not just a performance upgrade. It directly strengthens Ethereum’s demand, usage, and fee burn model, and the price part matters too. When Pectra launched, ETH pumped 50% in a week, even though Pectra was smaller and focused on wallets and staking. Fusaka increases capacity, reduces costs, improves data handling, and boosts the burn rate. It is a deeper, more meaningful upgrade. Ethereum becomes faster, cheaper, lighter, and more scalable starting today, and the market still hasn’t priced in how big this is for ETH.
Foresight News reported that the Aave community has proposed a temperature check proposal titled "Focusing on Aave V3 Multi-Chain Strategy," suggesting adjustments to its multi-chain strategy. The proposal includes increasing the reserve factor for underperforming networks to boost revenue, shutting down low-yield markets on zkSync, Metis, and Soneium, and setting a clear annual revenue threshold of $2 million for new instance deployments.
Aave's community is considering shutting down underperforming instances on low-value networks, according to an ongoing discussion in its governance channel. "Aave maintains several V3 instances which each carry operational costs and present risk surface area. It is believed that the revenue generated by several of these instances is not sufficient to offset the costs and risks they incur," an Aave Chan Initiative rep posted in a "Temp Check" in late November. While not yet a formal governance procedure, the active debate could presage a strategic reversal for the largest decentralized lending protocol, which has historically taken a maximalist view when it comes to launching on new blockchains. Launched in 2018, Aave is by far the largest decentralized lending protocol, accounting for over 81% of the total outstanding debt on Ethereum, according to The Block's data . The project is live on at least 18 chains, including a litany of Ethereum Layer 2s, as well as alternative Layer 1s like Aptos and Sonic , among others. Now, the ACI, a major delegate platform for the Aave DAO, appears to want to roll back some of this expansion and impose stricter requirements for future deployments. Low revenue According to the forum discussion, ACI's Growth SP is proposing rolling back Aave instances on zkSync, Metis, and Sony's Soneium network, which "have proven to lack product market fit." These three chains have attracted the lowest total value locked compared to other Aave deployments, and account for a fraction of Aave's income. For instance, Metis, which was co-founded by Vitalik Buterin's mother Natalia Ameline, currently sees just over $3,000 in annualized revenue. Soneium fares a bit better with annualized revenue over $50,000. By comparison, Aave's largest deployment on the Ethereum mainnet sees over $142 million in revenue while Base brings in $4.7 million with just a $1.8 million TVL. "In addition to the low revenue, some of these chains require additional engineering effort for any new asset onboardings, which, given current service provider workload and low pay-off, is not currently feasible," ACI wrote. As part of its proposal, ACI also suggested a $2 million annual revenue floor for future deployments and instituting a stablecoin "Reserve Factor" for other small earners. ACI called out Polygon, Gnosis, BNB Chain, Optimism, Scroll, Sonic, and Celo as potential candidates for additional reserve requirements to would lock up stablecoins like Aave's GHO or Wrapped ETH to boost revenue. So far, Aave DAO snapshot has received 100% support in a poll that closes Dec. 5. A Temp Check is generally seen as the first step towards a governance vote, and is a way to gauge sentiment and kickstart a conversation. Community discussion For its part, Aave governance adviser TokenLogic is in favor of scaling back Aave's multichain strategy, including deprecating the three "structurally non-viable" deployments on zkSync, Metis, and Soneium. However, TokenLogic took a more nuanced view of other low-performing chains like BNB Chain, Polygon, and Optimism, which represent a "strategically important position." ACI co-founder Marc Zeller separately posted that exceptions could be made for low-revenue chains depending on certain tradeoffs. "Celo has a high user count and is low maintenance; I’m not yet in favor of deprecation of this instance," Zeller argued. Likewise, some other AAVE governance token holders urge a more cautious approach towards deprecation. Nano noted that ACI's proposal could lead to a slippery slope where only major instances like Aave on Ethereum, Base, Avalanche, and Arbitrum are viable. "This would drastically reduce Aave's presence across the ecosystem and significantly shrink its potential user base," Nano wrote. "Such concentration goes against the broader market trend, where multichain expansion is viewed as a key driver of growth, and most projects are doing everything they can to be available on more chains — not fewer." Notably, Aave is often incentivized to deploy on new chains. ZKSync, for instance, airdropped the highest share of ZK tokens to the protocol out of any "native project," despite the fact it hadn't launched on the chain at the time. The DAO also votes against certain deployments — like its decision to skip Ethereum Layer 2 network Mode. If the Temp Check passes the snapshot vote, ACI will then be able to publish an Aave Request for Comments and then later progress to an official vote.
According to Jinse Finance, Dune data shows that the total value stored in the zkSync bridge has reached 3,874,716 ETH, while the total value bridged (TVB) on Starknet is 999,644 ETH, with a total of 1,228,885 bridge user addresses. The total value stored in the Arbitrum bridge is 5,865,348 ETH, Optimism bridge stores 1,018,045 ETH, and Base bridge stores 2,817,409 ETH.
Story Highlights Ethereum has entered a fresh consolidation phase near $3,078, yet its broader ecosystem appears to be heating up faster than the price suggests. While Bitcoin’s volatility has dominated market sentiment, Ethereum’s Layer-2 networks have quietly taken over the majority of transaction activity across the entire ecosystem. With L2s now processing more transactions than Ethereum itself and a major upgrade scheduled for early December, the groundwork for the next ETH price rally may already be forming beneath the surface. Advertisement Ethereum’s Layer-2 networks have become the primary driver of activity across the ecosystem, handling more transactions than the base layer itself. These solutions reduce fees, increase throughput, and allow faster settlements, enabling developers and users to scale applications efficiently without congestion. This shift highlights how Ethereum’s growth is increasingly L2‑driven, even if the ETH price hasn’t fully reflected it yet. Key On-Chain Metrics Daily active addresses: Stable, showing no major drop in user activity ETH supply post-Merge: Continues trending neutral to slightly deflationary Transaction fees: Lower than Q1–Q3 2024 levels, improving network usage conditions L2 gas consumption: Consistently rising, reflecting heavy rollup usage Developer activity: Among the highest across smart-contract networks L2s now process over 58.5% of all Ethereum ecosystem transactions. Total L2 TVL has grown to $43.3 billion, marking a 36.7% YoY surge. Several major L2 networks are leading this surge, including Arbitrum, Optimism, Base, zkSync, and Starknet, each processing millions of transactions daily. Their growing adoption reflects Ethereum’s scaling progress and underlines why L2 growth could be the catalyst for the next ETH price rally. Ethereum’s next major upgrade, Fusaka, is scheduled for December 3, 2025, and aims to further enhance the network’s efficiency and Layer-2 scalability. This upgrade introduces PeerDAS blob sampling, improved data handling for rollups, and optimizations for BPO forks, all designed to reduce congestion and costs on L2 networks. Expected Impacts: 40%–60% reduction in Layer-2 data fees, making transactions cheaper for end-users and developers. Higher rollup throughput allows for more transactions per second and smoother network operations. Faster settlement confirmation on L2s, strengthening Ethereum’s role as the base layer for scalable applications. Historically, Ethereum upgrades such as EIP-1559 and Dencun have triggered increased on-chain activity and positive medium-term price moves. Fusaka could similarly act as a catalyst, reinforcing Ethereum’s L2 ecosystem and potentially providing momentum for ETH’s next price rally. Following the recovery from the local lows close to $2700, the ETH price has managed not only to rise above $3000, but also to hold the range. The price is surging even in times of thin liquidity, which indicates the bulls are overpowering the bears in the short term. However, a breakout above $3150 may validate a reversal, but the technicals currently remain neutral. The ETH price has begun to rebound, which may appear as the start of a recovery phase, but the major challenge remains. The 50/200-day MA are close to undergoing a bearish crossover, called the ’death cross,’ which has a massive negative impact on the rally. Previously, in March, this caused a 45% pullback, and if it validates now, the ETH price is feared to drop as low as $3,350. However, the RSI remains elevated; hence, the Ethereum price could stay in a consolidation phase for a while. Market sentiment remains under fear despite the recovery. Besides, the strength behind Ethereum lies in the L2S and the upcoming upgrade. Therefore, we need to wait and see how the next ETH price action unfolds, as a rise to $2500, which is an important resistance, may shed light on the path to $5000.
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