ZKsync Allocates $60M ZK Tokens in Its Ignite Program, TVL Soars

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300 million ZK tokens, part of Ethereum‘s layer-2 scaling network ZKsync, have been issued with a market value of $60 million within their Ignite Program. According to The Block, these tokens will serve as incentives for participants in the program over a period of nine months. Here’s the current status:

– ZK Token Price: $0.22
– 24h Volatility: 2.0%
– Market Cap: $814.70 M
– 24h Volume: $153.00 M

Details of ZKsync’s Ignite Program

In simpler terms, the Ignite Program is designed for Decentralized Finance (DeFi) to evolve the ZKsync Era into a comprehensive platform for liquidity. By eliminating fragmentation and boosting user adoption, this program strengthens network effects by unifying liquidity across the DeFi Elastic chain.

In simple terms, the Ignite Program has been divided into several phases. The first phase, spanning from January 6 to March 31, awards approximately 100 million ZK tokens worth $20 million to DeFi users. The rest of the 200 million tokens will be distributed among DeFi users during the following stages.

Essentially, to join in, users of DeFi must offer liquidity on selected decentralized trading platforms, derivatives markets, and loan services that operate within the ZKsync Era network. These platforms include DEXs like Uniswap, SyncSwap, and PancakeSwap, lending platforms such as Aave, and perpetual trading platforms like Holdstation.

As an analyst, I’ve observed a significant surge in optimism within the ZKsync ecosystem following the announcement of the Ignite Program launch. According to recent data from DeFiLlama, the Total Value Locked (TVL) on ZKsync has skyrocketed to a staggering $186.44 million at present. This represents a near 90% increase from its previous level of $97 million. Quite remarkably, this growth trajectory indicates an almost unbridled enthusiasm among investors and users in the ZKsync ecosystem.

Usually, a large Total Value Locked (TVL) indicates that the Layer-2 scaling solution has earned more user confidence. This confidence leads them to deposit their assets into it because they perceive the network as reliable and secure.

Significantly, the ZKsync system enhances Ethereum-centric Decentralized Applications (dApps) by elevating transaction speed and decreasing related expenses. By employing Zero-Knowledge proofs (ZK-proofs), ZKsync strives to optimize scalability, privacy, and security within the Ethereum primary network.

In June 2024, the platform ZKsync experienced a decrease in user engagement and a reduction in Total Value Locked (TVL), following a token distribution event where 3.6 billion ZK tokens were given to eligible wallets. By the end of December, the average number of active addresses had dropped significantly, from over 200,000 in July 2024 down to only 30,000.

ZK rollup chains, including Scroll, Linea, and Starknet, also experienced similar declines.

ZKsync 2025 Ambitious Roadmap

Despite facing hurdles in 2024, ZKsync has announced its ambitious aim for 2025: cutting transaction fees down to just $0.0001. Moreover, they aim to escalate the network’s speed to an impressive 10,000 transactions per second (TPS). These advancements are intended to enhance both the efficiency and user-friendliness of the platform.

Moving forward, Ethereum L2 intends to optimize ZKsync’s Elastic Network and ZK Stack, positioning them as top choices for blockchain developers. By the end of 2025, when median gas fees are expected to decrease, the technology offered by ZKsync is anticipated to gain even more appeal among developers due to its improved attractiveness.

By 2025, the protocol’s aggressive blueprint mirrors its previous initiatives aimed at enhancing decentralization. Starting from September, the protocol has introduced a decentralized management system, empowering community participants to actively engage in the decision-making process of the protocol.

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2025-01-07 14:15