Total Value Locked in zkSync Era Surges by 12% in One Week

Total Value Locked in zkSync Era Surges by 12% in One Week

Matter Labs‘ zkSync Era, a zero-knowledge (ZK) rollup designed to scale Ethereum, continues to attract significant capital at a rapid pace.

According to data source L2Beat, the Total Value Locked (TVL) on zkSync Era surpassed $500 million early Monday, representing a 12% increase in just one week. TVL is a widely used metric for tracking the total value of digital assets locked or staked on a decentralized finance platform.

zkSync Era, which maintains compatibility with the Ethereum Virtual Machine (EVM) while ensuring native account abstraction, is now the third-largest rollup by TVL, following Arbitrum and Optimism.

As of now, zkSync has locked over 220,000 ether (ETH), equivalent to approximately $378.3 million, along with 121 million USDC (a dollar-pegged stablecoin), and 14.43 million MUTE, valued at $7.53 million. MUTE serves as the native cryptocurrency of Mute, a decentralized exchange based on zkRollup.

The number of daily active addresses has shown a steady increase since May, averaging 175,000 over the past four weeks. zkSync was launched in March 2023.

Recently, liquid staking solution Rocketpool went live on zkSync Era, joining the list of decentralized applications migrating to layer 2 platforms. The rising demand for rollups is believed to be driven by the Ethereum core developers’ focus on implementing the Ethereum Improvement Proposal (EIP) 4844, according to Galaxy Digital.

EIP 4844 will introduce a new transaction type to Ethereum that accepts “blobs” of data and reduces transaction fees on rollups.

Alex Thorn, Head of Research at Galaxy Digital, stated in a newsletter dated June 2 that the prioritization of EIP 4844 as the next major code change in Ethereum’s upcoming Cancun/Deneb upgrade, scheduled to activate in the Fall or Winter next year, confirms the importance of rollups for Ethereum’s long-term scalability and the necessity for Ethereum-based dapps to eventually transition the majority of their operations to a more cost-effective rollup.

It’s worth noting that activity on other ZK rollups like Starknet and Polygon zkEVM remains robust. This has led some observers to anticipate a ZK season, a term used in the crypto market to describe a period when ZK rollups outperform other market sectors by a significant margin.