Ethereum’s Layer 2 scaling solution, zkSync Era, sees its total value locked (TVL) exceed $500 million as increased scalability continues to attract significant capital investment.
In decentralized finance (DeFi), the balance of power is constantly shifting up and down with the rise of innovations.
One such advancement is zkSync Era, a Layer 2 protocol that improves the scalability of the Ethereum (ETH) blockchain.
Recently, the total value locked (TVL) in zkSync Era exceeded $500 million, which is a 12% increase in one week, as indicated by data from L2Beat.
This increase has cemented zkSync Era as the third largest TVL solution, behind Arbitrum and Optimism.
What is zkSync Era?
zkSync Era, an initiative by Matter Labs, is designed to scale Ethereum while maintaining compatibility with the Ethereum Virtual Machine (EVM) and providing native account abstraction.
Their goal is to amplify Ethereum’s transactional performance while safeguarding its core values. This design ethos is essential to adapt to the increasing demands of the web 3 world without compromising security.
For an entire year, the zkSync Era testnet reported strong performance with around 500,000 active accounts and nearly 9 million transactions. The protocol offers security equivalent to Ethereum and promises cheaper storage solutions than Layer 1.
The Rise of zkSync Era Amidst Other Layer 2 Solutions
The rise of the zkSync Era is further evidenced by its increasing adoption among DeFi applications.
Rocketpool, a liquid share solution, recently integrated with zkSync Era, reinforcing the trend of protocols gravitating towards Layer 2 platforms for better scalability. This integration allows users to stake their ETH through the zkSync dashboard.
Furthermore, the focus of core Ethereum developers on Ethereum Improvement Proposal (EIP) 4844 likely contributed to the increasing user demand for stacks.
EIP 4844 is slated to introduce a new type of transaction to Ethereum, designed to reduce transaction fees on stacks.
the road ahead
As Ethereum continues to evolve, the increasing adoption of Layer 2 solutions like zkSync Era signifies a crucial change in the blockchain landscape.
With ever-increasing TVL and upcoming Ethereum upgrades like EIP 4844, Ethereum Layer 2 solutions seem poised for sustained growth.
The zkSync Era demonstrates the dynamism of the DeFi landscape and the constant search for more speed, scalability and security.
With other protocols, like Rocketpool, moving to integrate with the zkSync Era, the future promises an era of greater scalability for Ethereum, likely to drive even more capital and innovation into the space.
