Matter Labs zkSync Era Sets New Record with Total Value Locked Surpassing 500 Million jpg

Matter Labs’ zkSync Era Sets New Record with Total Value Locked Surpassing $500 Million

Defi news, News

In a significant development for Ethereum’s scalability, Matter Labs’ zkSync Era is experiencing rapid growth in capital. Recent data from L2Beat indicates that the total value locked (TVL) on zkSync Era surpassed $500 million on Monday, marking a noteworthy 12% increase within just one week.

zkSync Era now stands as the third-largest rollup platform in terms of total value locked, following closely behind Arbitrum and Optimism. Its key advantage lies in providing scalability to Ethereum while ensuring compatibility with the Ethereum Virtual Machine (EVM) and supporting native account abstraction.

The current figures reveal that zkSync has locked over 220,000 ether (ETH) with an approximate value of $378.3 million. Additionally, it holds around 121 million USDC (a stablecoin pegged to the US Dollar) and 14.43 million MUTE tokens, valued at $7.53 million. The MUTE token serves as the native cryptocurrency of Mute, a decentralized exchange built on ZkRollup technology.

Since May, the number of daily active addresses on zkSync has been steadily increasing, averaging 175,000 over the past four weeks. The platform was launched in March 2023 and has been gaining traction ever since.

Adding to its growing popularity, Rocketpool, a liquidity-staking solution, recently went live on zkSync Era. This integration contributes to the expanding list of decentralized applications (dapps) migrating to layer 2 platforms. The rising demand for rollup solutions can be attributed to Ethereum’s core developers’ focus on implementing Ethereum Improvement Proposal (EIP) 4844, as observed by Galaxy Digital.

EIP 4844 introduces a new transaction type to Ethereum that accepts data “blobs” with the aim of reducing transaction fees on rollups. The prioritization of EIP 7844 in Ethereum’s upcoming Cancun/Deneb upgrade, expected to be activated in the Fall or Winter of next year, indicates a positive trajectory for cost-effective rollups. Dapps built on Ethereum are anticipated to gradually shift the majority of their operations to these efficient solutions.

Alex Thorn, the head of research at Galaxy Digital, emphasized the significance of rollups for Ethereum’s scalability in a newsletter dated June 2. He underscored the need for dapps to adapt to these more cost-effective solutions as the ecosystem continues to evolve.

Compiled by Coinbold

dApps, ETH, Stable Coin, USDC, zksync