ZKsync Protocol Status Report Q4 2024

Today, crypto analyst Messari released a report concerning the status of the ZKsync protocol in Quarter 4 of 2024. The report shared an in-depth analysis of ZKsync’s operational activities during the fourth quarter, highlighting its revenue growth and platform adoption.

Key Update: ZKsync’s Elastic Network

ZKsync’s Elastic Network vision is taking shape, unifying ZK-powered chains and attracting major institutional players to its ecosystem.

QoQ Metrics 📊

• ZK Market Cap: ⬆️ 35% to $676M
• DeFi TVL: ⬆️ 9% to $97.1M
• Aave TVL: ⬆️ 261% to $10.9M

ZKsync Active Addresses Drop

According to the report, the release of ZKsync’s native token (ZK) in June 2024 contributed to significant growth for the protocol’s market cap. The platform’s market capitalization closed Quarter 4, December 24 at $676 million, marking a 35% growth from Quarter 3, September 24. The token price rose by 35% from a low of $0.14 to a high of $0.18 by the end of Quarter 4.

The platform earned $567,000 in transaction fees in Quarter 4, a decrease of 4% compared to Quarter 3. The introduction of EIP-4844 at the end of Quarter 1 helped decrease transaction costs on the Layer-2 scaling network by 100x, but also led to a significant drop in fees paid on the protocol.

Additionally, the protocol experienced a 63% QoQ decline in average daily active addresses, dropping from 110,900 in Quarter 3 to 41,400 in Quarter 4. This drop was mainly due to a lack of incentives post-June’s airdrop program. However, average daily new addresses only declined by 2% from 12,400 to 12,100, indicating ongoing interest in the network.

Lastly, ZKsync recorded a 9% growth in DeFi TVL, rising from $88.8 million to $97.1 million, ranking it as the 28th protocol in terms of TVL.

ZKsync Price Updates

ZKsync (ZK) has seen a mild 1.7% drop over the last 24 hours following several weeks of gains. This downturn is attributed to liquidity contraction and a shift towards bearish sentiment.

Despite earlier bullish movement, evident with 17.8% and 17.4% surges in the past weeks, the recent decline aligns with decreasing market liquidity, reflecting a loss of investor confidence. As of now, the token’s transaction volume decreased by 28.28% in 24 hours, signaling a potential intensification of price drops if outflows continue.

Moreover, indicators from the derivatives market show rising bearish sentiment. The open interest (OI) on ZKsync has dropped by 2.54%, suggesting that many traders are closing their contracts. These signals indicate that ZK is in a bearish phase, with no sign of an impending recovery.