Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Vitalik Buterin Supports ZKSync: Evaluating the Long-Term Investment Potential and Future Prospects of Ethereum Layer 2 Solutions

Vitalik Buterin Supports ZKSync: Evaluating the Long-Term Investment Potential and Future Prospects of Ethereum Layer 2 Solutions

Bitget-RWA2025/11/30 02:32
By:Bitget-RWA

- Vitalik Buterin's endorsement of ZKSync's Atlas upgrade validates its 15,000 TPS scalability, signaling a shift in Ethereum's scaling priorities. - ZKSync's ZK Stack framework enhances cross-chain efficiency, attracting $15B in 2025 and a 50% ZK token surge post-endorsement. - ZKSync competes with Arbitrum ($16.63B TVL) and Optimism ($6B TVL) via cost efficiency and EVM compatibility, aiming to capture institutional capital. - Ethereum's post-Merge roadmap, including Proto-Danksharding, aligns with ZKSyn

Vitalik Buterin's Endorsement Sparks New Momentum for ZKSync and Ethereum Layer 2

Vitalik Buterin, co-founder of Ethereum, has recently voiced strong support for ZKSync, reigniting conversations about the future direction of Ethereum’s Layer 2 (L2) solutions and their significance for long-term investors. His backing of ZKSync’s Atlas upgrade—a breakthrough that enables up to 15,000 transactions per second (TPS) with minimal fees—has not only affirmed the project’s scalability but also highlighted a shift in Ethereum’s approach to scaling. As the L2 landscape rapidly evolves, investors are closely evaluating how ZKSync’s innovations, alongside Ethereum’s post-Merge plans, could shape the blockchain’s next chapter.

ZKSync’s Innovations and Growing Institutional Interest

The Atlas upgrade, which has received public praise from Buterin, introduces the ZK Stack framework. This system allows for seamless liquidity movement between Ethereum’s mainnet (Layer 1) and its Layer 2 networks, reducing fragmentation and boosting the efficiency of cross-chain settlements. This advancement addresses major hurdles in decentralized finance (DeFi) and paves the way for greater institutional participation. With near-instant transaction finality and the ability to handle 15,000 TPS, ZKSync has already attracted $15 billion in institutional investments in 2025. Following Buterin’s endorsement, the ZK governance token surged by 50%.

ZKSync Atlas Upgrade

Looking ahead, the Fusaka upgrade—scheduled for December 2025—aims to double throughput to 30,000 TPS, further cementing ZKSync’s reputation as a high-performance L2. This development aligns with Ethereum’s Proto-Danksharding (EIP-4844) initiative, which introduces “blob” transactions to lower data costs for rollups. ZKSync has already adopted this technology, making data availability cheaper and more efficient for users. Experts suggest that the combination of ZKSync’s zero-knowledge proofs and Ethereum’s data layer improvements could transform L2 transaction economics, making them more viable for enterprise-scale applications.

Layer 2 Showdown: ZKSync, Arbitrum, and Optimism

Despite ZKSync’s impressive technical progress, it faces stiff competition from established L2 players like Arbitrum and Optimism. As of early 2025, Arbitrum leads the market with $16.63 billion in total value locked (TVL) and a 45% market share, supported by over 1.37 million daily active wallets and a robust ecosystem of decentralized applications. Optimism, with $6 billion in TVL, has carved out its own space through modular infrastructure and developer incentives such as Retroactive Public Goods Funding.

ZKSync distinguishes itself with ultra-low transaction fees (as little as $0.01), full compatibility with the Ethereum Virtual Machine (EVM), and a governance model that links the ZK token’s utility to network activity through buybacks and staking rewards. While its 15% share of TVL is still behind Arbitrum, it signals increasing confidence from institutional investors. The key question is whether ZKSync can maintain this momentum as the Fusaka upgrade approaches, potentially drawing more capital away from its competitors.

Ethereum’s Roadmap: Opportunities and Hurdles for Layer 2

Ethereum’s post-Merge strategy, which includes Proto-Danksharding and future shard chain integrations, is designed to scale the network to over 100,000 TPS. This vision complements ZKSync’s goal of creating a unified liquidity platform where Layer 1 and Layer 2 interact seamlessly. Upcoming features like data availability sampling and proposer-builder separation (PBS) under the “Surge” phase are expected to further reduce operational costs for rollups, benefiting solutions like ZKSync.

However, there are challenges ahead. The migration of transaction volume to L2s has reduced Ethereum’s on-chain fee revenue, impacting its deflationary model. While Ethereum’s staking infrastructure and the approval of spot ETFs have attracted more institutional interest, the long-term success of L2s will depend on their ability to adapt to ongoing changes in Ethereum’s core protocol. ZKSync’s emphasis on privacy-focused applications and interoperability could position it as a specialized L2, rather than a direct rival to Arbitrum or Optimism.

Institutional Flows and Market Dynamics

Institutional engagement with Ethereum’s L2 ecosystem has accelerated in 2025, with ZKSync emerging as a major beneficiary. The ZK governance token has demonstrated resilience, even amid periodic sell-offs from token unlock events, such as the 3.37% supply release on November 17. Analysts point to a 26.63% increase in ZK’s price over the past month as evidence of growing confidence in its utility-driven tokenomics and the technical achievements of the Atlas upgrade.

Broader macroeconomic trends, including Ethereum’s prominence as a smart contract platform and the introduction of regulated investment products like spot ETFs, have further fueled institutional interest. Nevertheless, investors should remain mindful of short-term volatility, especially as ZKSync’s Fusaka upgrade approaches and faces potential execution risks.

Strategic Outlook: ZKSync’s Role in a Diversified Crypto Portfolio

For investors with a long-term perspective, ZKSync stands out as a promising contender in Ethereum’s scaling journey. Its alignment with Proto-Danksharding, growing institutional adoption, and endorsement from Buterin highlight its potential to address Ethereum’s scalability issues. While Arbitrum and Optimism currently hold first-mover advantages, ZKSync’s focus on privacy, interoperability, and cost-effectiveness could enable it to capture a larger share of the L2 market.

As Ethereum’s post-Merge roadmap unfolds, Layer 2 solutions like ZKSync are poised to remain central to the network’s evolution. The upcoming Fusaka upgrade and declining data availability costs will be pivotal in attracting institutional capital and enterprise adoption. Investors who understand these shifting dynamics may find ZKSync and the broader Ethereum L2 ecosystem to be valuable additions to a well-balanced crypto portfolio.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin Updates Today: MicroStrategy’s Bold Bitcoin Move: Challenging Doubters or Setting Off a Ticking Bomb?

- MicroStrategy reaffirms Bitcoin-centric strategy, holding 3% of BTC supply despite market skepticism and stock volatility. - $21B in equity/debt financing fueled Bitcoin accumulation, creating leverage-driven profits tied to price swings and dilutive capital raises. - Stock-NET asset value parity and $5.38B institutional outflows highlight risks from Bitcoin volatility and financing model criticism. - Custody shift to Fidelity reduced on-chain transparency while index exclusion limits passive demand amid

Bitget-RWA2025/11/30 03:12
Bitcoin Updates Today: MicroStrategy’s Bold Bitcoin Move: Challenging Doubters or Setting Off a Ticking Bomb?

WFE Cautions That Tokenized Stocks May Threaten Market Integrity and Lead to Regulatory Disparities

- Nasdaq pushes SEC to approve tokenized stocks, facing WFE warnings about eroded market integrity and investor protections. - WFE argues blockchain adoption costs outweigh benefits in already efficient equity markets, urging adherence to established frameworks. - SEC's crypto-friendly shift under Trump creates tension between innovation and regulatory safeguards, with global standards remaining fragmented. - Tokenized assets could enable 24/7 trading but risk regulatory fragmentation and systemic risks hi

Bitget-RWA2025/11/30 03:12
WFE Cautions That Tokenized Stocks May Threaten Market Integrity and Lead to Regulatory Disparities

Bitcoin Updates: South Korea's Trade Agreement and Tether's Gold Influence Worldwide Crypto Landscape

- South Korea's 15% U.S. auto tariff cut, secured via a $350B investment pledge, may indirectly reshape global crypto markets through economic ripple effects. - Tether's 116-ton gold reserves, rivaling central banks, highlight its strategy to diversify stablecoin backing, potentially tightening gold supply and influencing crypto-traditional market linkages. - Bitcoin's performance increasingly correlates with macro trends like tech stocks (e.g., Nvidia) and institutional-grade assets, as spot ETFs drive ma

Bitget-RWA2025/11/30 02:54
Bitcoin Updates: South Korea's Trade Agreement and Tether's Gold Influence Worldwide Crypto Landscape

XRP News Today: The Crypto Dilemma: Is It Possible to Balance Expansion and Responsibility?

- Ripple expands in Africa/Turkey as crypto adoption grows in emerging markets, while Binance targets ultra-high-net-worth clients with $5.1B+ March trading volumes. - Truther launches non-custodial USDT Visa card in El Salvador and expands Swapix API to Latin America/Russia, aiming to reduce transaction costs via local payment systems. - Binance faces legal scrutiny over Hamas-linked transactions, highlighting tensions between crypto decentralization and AML regulations as traditional institutions enter t

Bitget-RWA2025/11/30 02:54
XRP News Today: The Crypto Dilemma: Is It Possible to Balance Expansion and Responsibility?