A zero-knowledge (ZK) rollup designed to scale Ethereum, Matter Labs’ zkSync Era, is experiencing rapid growth in terms of capital. According to L2Beat data, the total value locked (TVL) on zkSync Era surpassed $500 million on Monday, marking a 12% increase within a week.
zKsync Era is the third-largest rollup in terms of total value locked, trailing behind Arbitrum and Optimism. It provides scalability to Ethereum while maintaining compatibility with the Ethereum Virtual machine(EVM) and supporting native account abstraction.
As of now, zkSyne has locked over 220,000 ether (ETH) worth approximately $378.3 million around 121 million USDC (a stablecoin pegged to the US Dollar), and 14.43 million MUTE tokens valued at $7.53 million. MUTE is the native cryptocurrency of Mute, a decentralized exchange based on ZkRollup.
The number of daily active addresses on zkSync has been steadily increasing since May, averaging 175,000 over the past four weeks. zkSync was launched in March 2023.
Recently, Rocketpool, a liquidity-staking solution, went live on zkSync Era, joining the growing list of decentralized applications migrating to the layer 2 platforms. The rising demand for rollups can be attributed to Ethereum core developers’ focus on implementing Ethereum Improvement Proposal (EIP) 4844, as noted by Galaxy Digital.
EIP 4844 introduced a new transaction type to Ethereum that accepts data “blobs,” aiming to reduce transaction fees on rollups. The prioritization of EIP 7844 in Ethereum’s upcoming Cancun/Deneb upgrade, expected to activate in the Fall or Winter next year. Dapps built on Ethereum are expected to gradually migrate the majority of their operations to more cost-effective rollups.
Alex Thorn, the head of research at Galaxy Digital, highlighted this in a newsletter dated June 2, emphasizing the importance of rollups for Ethereum’s scalability and the need for dapps to adapt to a more cost-effective solution.
Also Read: zkSync’s DeFi Ecosystem Experiences Explosive Growth, with Deposits Exceeding $110M
