zkSync Era, the zero-knowledge project by Matter Labs aimed at scaling the Ethereum network, has passed a significant milestone as it continues to attract rapid capital.
Total Value Locked (TVL) Surpasses $500 Million
According to figures presented by data source L2Beat, the Total Value Locked (TVL) in zkSync Era rose above $500 million in the early hours of the day, indicating a 12% increase within a week. TVL is a metric commonly used to monitor the total value of crypto assets locked or staked in a decentralized finance (DeFi) protocol.
zkSync Era, a scaling solution that maintains Ethereum Virtual Machine (EVM) compatibility while also providing native account abstraction, currently ranks as the third-largest roll-up in terms of Total Value Locked, alongside Arbitrum (ARB) and Optimism (OP).
As of the time this article was written, over 220,000 Ether (ETH), or approximately $378.3 million, around 121 million USDC Coin (USDC), or $121 million, and 14.43 million of the zkRollup-based decentralized exchange Mute’s native crypto, Mute (MUTE), or $7.53 million, are locked in zkSync.
The number of daily active wallet addresses in zkSync Era, which was launched in March, has been steadily increasing since May and averaged 175,000 over the last four weeks.
The New Season of the Crypto Market: ZK
The increasing demand from users for rollups, according to crypto investment firm Galaxy Digital, stems from Ethereum core developers’ focus on implementing Ethereum Improvement Proposal (EIP) 4844. EIP 4844 will introduce a new transaction type that accepts data “blobs” to Ethereum and reduces transaction fees in roll-ups.
Alex Thorn, Director of Research at Galaxy Digital, stated in a bulletin dated June 2, “The prioritization of EIP 4844 as the next significant code change in the Cancun/Deneb update planned to be activated on Ethereum this fall or next winter confirms the importance of roll-ups for Ethereum’s long-term scalability and the need for decentralized applications (dApps) built on Ethereum to eventually transfer most of their operations to a more cost-effective roll-up.”
The activities of other ZK roll-ups such as Starknet and Polygon zkEVM continue to be extremely high. Some market observers are calling this the ‘ZK Season,’ a crypto market argot used for a period when ZK outperforms other market sectors with a significant difference.
