Vitalik Buterin Supports zkSync and Shares Insights on the Evolution of Scalable Ethereum Solutions

The ecosystem’s progress depends on its capacity to expand while maintaining both security and decentralization. In October 2025, Vitalik Buterin, one of Ethereum’s co-founders, openly supported as a key element in this mission, highlighting its contribution to Ethereum’s resilience and scalability. This public backing, along with zkSync’s Atlas upgrade, has reignited discussions about the investment prospects of Layer-2 technologies. As competition to lead Ethereum’s scaling solutions heats up, investors need to consider technological breakthroughs, market trends, and institutional involvement to pinpoint the most attractive prospects.

Buterin’s Support: Driving zkSync’s Growth

Buterin’s endorsement of zkSync reflects his confidence in zero-knowledge (ZK) rollups as the best route for Ethereum’s expansion. In a widely referenced remark, he called zkSync’s impact “undervalued and significant,” stressing its ability to process transactions off-chain while safeguarding the Ethereum mainnet’s security,

. The Atlas upgrade for ZKSync, released in October 2025, brings this vision to life. With support for 30,000 transactions per second (TPS) and instant liquidity transfers between Layer 1 and Layer 2, the upgrade has turned Ethereum into a “central liquidity platform,” minimizing fragmentation and enhancing user experience, .

Buterin’s influence was not just in words. After his endorsement, zkSync’s native token (ZK) jumped 120% to $0.74 in just two days, pushing its market value close to $600 million—a level not reached since May 2025,

. This surge was driven by growing institutional interest, with more than 30 major financial players, such as Citi and Mastercard, exploring zkSync’s Prividium, a privacy-focused Layer-2 solution for enterprises, .

Technical Comparison: zkSync and Its Rivals

Although zkSync has made significant strides, it faces tough competition from optimistic rollup solutions like

and . A side-by-side look at scalability, security, and adoption highlights important distinctions:

1. Scalability:
   zkSync’s ZK-rollups use cryptographic proofs for immediate transaction confirmation, unlike optimistic rollups, which depend on fraud proofs and can cause delays,

   Coinbureau
   . With the Atlas upgrade’s 30,000 TPS, zkSync is well-positioned for high-volume applications, though Arbitrum’s established DeFi network and Base’s rapid user growth keep them competitive,
   RealSatoshiclub
   .

2. Security:
   ZK-rollups naturally offer trustless security, as mathematical proofs validate transactions. In contrast, optimistic rollups rely on external parties to detect fraud, which can introduce risks,

   Coinbureau
   . Buterin’s latest suggestion to swap Ethereum’s modexp precompile for standard EVM code further boosts ZK-rollup efficiency, though it results in a 15-25% increase in gas costs,
   Coinotag
   .

3. Adoption:
   Arbitrum leads in total value locked (TVL), boasting $16 billion within its ecosystem, while Base, backed by

   Coinbase
   , has reached $4.94 billion in TVL and holds a 43.5% market share,
   PowerDrill
   . zkSync, meanwhile, is narrowing the gap through partnerships with institutions and a focus on privacy-first applications,
   Yahoo Finance
   .

Investment Outlook: Weighing Innovation Against Market Forces

The outlook for Layer-2 investments is determined by three main elements: technological progress, ecosystem expansion, and institutional participation.

1. zkSync’s Tokenomics and Institutional Interest:
   zkSync’s updated tokenomics, which directs network income toward token buybacks and burns, has created deflationary pressure and linked ZK’s value to platform activity,

   Cryptopolitan
   . This approach, together with the Atlas upgrade’s improved performance, has drawn over $300 million in daily trading volume,
   Coinotag
   . Still, critics point out that zkSync’s ecosystem trails Arbitrum’s in terms of developer resources and DeFi integration,
   RealSatoshiclub
   .

2. Arbitrum’s Established Network:
   Even though Base has taken some market share, Arbitrum’s $16 billion TVL and more than 250 protocols highlight its strong position in DeFi,

   PowerDrill
   . Its recent integration with BitcoinOS, which allows cross-chain bridging, further broadens its capabilities,
   Coindesk
   . However, its dependence on optimistic rollups could limit its appeal for privacy-focused sectors.

3. Optimism’s Uncertainty:
   While Optimism’s Superchain initiative and retroactive public goods funding are notable, the absence of clear post-Buterin data (such as TVL and transaction numbers) makes its investment case less certain,

   Coinotag
   . Broader Ethereum expansion, including $1.37 billion in institutional staking, indirectly supports Optimism but does not compensate for its lack of data,
   Coinotag
   .

Conclusion: A Multi-Layered Investment Strategy

Vitalik Buterin’s backing has positioned zkSync as a central player in Ethereum’s scaling story, but investors should take a balanced approach. Those seeking advanced technology and strong institutional ties may find zkSync’s ZK-rollup design and Atlas upgrade particularly appealing for the long term. Meanwhile, Arbitrum and Base, with their established TVL and user communities, offer more stable opportunities for benefiting from DeFi’s expansion. Optimism, despite its innovative approach, needs more transparent data to warrant inclusion in a well-rounded portfolio.

As Ethereum’s scaling competition evolves, the protocols that best combine technical excellence with widespread adoption will come out on top. While Buterin’s vision is reflected in zkSync’s progress, the ultimate outcome will be determined by real-world execution rather than endorsements alone.