Crypto Catastrophe: ZKsync’s Incentive Program Goes Poof! 💨

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In a universe not so far away, ZKsync, the illustrious Layer-2 scaling solution for the Ethereum (ETH) blockchain, has decided to cancel the second season of its wildly popular incentive program, Ignite. Yes, you heard that right! 🎉

This shocking revelation has sent ripples of concern through the crypto community, resulting in a staggering 19% decline in the price of the ZK token in just a week. Talk about a rollercoaster ride! 🎢

As if the crypto market wasn’t already a swirling vortex of bearish pressure, ZKsync has opted for a more cautious financial approach, presumably to ensure its long-term survival in this cosmic game of financial chess.

Cancellation of Ignite Season 2

On this fateful day, March 14, 2025, ZKsync officially announced that it would be pulling the plug on Ignite come March 17, 2025, with no plans for encore performances or additional rewards. How very generous of them! 🙄

ZKsync Ignite Program Update 📣 After careful consideration, the DeFi Steering Committee (DSC) has decided to not renew Ignite for Season 2 and will be sunsetting the program starting March 17th, 2025 by turning off rewards for period 6. Here’s why:

— ZKsync Ignite (@ZKsyncIgnite) March 13, 2025

The announcement outlined three key reasons for this decision, the first being ZKsync’s grand plan to transition towards the Elastic Network, a scalable and interoperable blockchain system. Because who doesn’t love a good transition? 🌈

According to the project team, continuing Ignite would divert crucial resources away from this long-term vision involving the Elastic Network. Apparently, they believe that adding more TVL without a robust interoperability mechanism is akin to trying to fill a bathtub with the plug out. 🚿

Finally, with the broader crypto market resembling a bear in hibernation, ZKsync has chosen to tighten its financial belt. The protocol lamented:

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ZK is currently trading near the support at the lower Bollinger Band at $0.0594. The middle band (SMA 20) at $0.0854 acts as an immediate resistance level, while the upper band at $0.1115 is like a distant star, just out of reach. 🌌

If ZK fails to recover above $0.07, further downside could lead to a test of the $0.059 – $0.060 support zone. How thrilling! 🎢

However, if ZK can reclaim the $0.0854 level, it may trigger a short-term recovery. Moreover, breaking above the $0.10 psychological level would indicate renewed bullish momentum, targeting $0.1115. Fingers crossed! 🤞

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2025-03-14 22:21