Why is zksync going up

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Last updated: April 8, 2026

Quick Answer: ZkSync is experiencing growth due to its innovative zero-knowledge rollup technology that significantly reduces Ethereum transaction costs and increases throughput. In 2023, zkSync Era processed over 100 million transactions, with daily active addresses peaking at over 900,000 in December 2023. The platform's total value locked (TVL) surpassed $800 million in early 2024, driven by major DeFi integrations and the anticipation of its native token launch. Additionally, strategic partnerships with projects like Uniswap and Curve Finance have expanded its ecosystem and user adoption.

Key Facts

zkSync Era processed over 100 million transactions in 2023
Daily active addresses on zkSync peaked at over 900,000 in December 2023
Total value locked (TVL) on zkSync surpassed $800 million in early 2024
zkSync uses zero-knowledge rollup technology to reduce Ethereum gas fees by up to 100x
Major DeFi protocols like Uniswap and Curve Finance have deployed on zkSync

Overview

ZkSync is a Layer 2 scaling solution for Ethereum, developed by Matter Labs, that utilizes zero-knowledge rollup (zk-rollup) technology to enhance blockchain scalability and reduce transaction costs. Launched in 2020 with zkSync Lite and followed by zkSync Era in March 2023, it aims to address Ethereum's limitations in throughput and high gas fees. The platform has gained traction due to its compatibility with the Ethereum Virtual Machine (EVM), allowing developers to deploy existing smart contracts with minimal modifications. By 2024, zkSync had become one of the leading zk-rollup solutions, processing millions of transactions daily and attracting significant investment, including a $200 million funding round in November 2022. Its growth is part of a broader trend in the crypto space toward Layer 2 solutions, with zkSync competing against alternatives like Optimism and Arbitrum.

How It Works

ZkSync operates by bundling multiple transactions off-chain into a single batch, which is then compressed and verified on the Ethereum mainnet using zero-knowledge proofs. This process involves generating a cryptographic proof (SNARK or STARK) that validates the correctness of all transactions without revealing their details, ensuring privacy and security. The rollup mechanism reduces data storage on-chain, cutting gas fees by up to 100x compared to direct Ethereum transactions, while maintaining Ethereum's security guarantees. Users deposit assets into a smart contract on Ethereum, interact with dApps on zkSync's Layer 2, and can withdraw funds back to Layer 1 after proof verification. The platform supports various token standards and offers fast finality, with transactions typically settling in minutes, making it efficient for DeFi, NFTs, and other applications.

Why It Matters

The rise of zkSync matters because it enhances Ethereum's scalability, enabling broader adoption of decentralized applications by making transactions faster and more affordable. This has real-world impact in sectors like finance, where reduced costs facilitate micro-transactions and improve accessibility for users globally. By processing over 100 million transactions in 2023, zkSync has demonstrated its capacity to support high-volume use cases, such as gaming and social media platforms, without congesting the mainnet. Its ecosystem growth, with TVL exceeding $800 million, signals strong developer and investor confidence, positioning zkSync as a key player in the evolution of Web3 infrastructure and the transition to a multi-chain future.