ZKSync on the Path to Recovery, Launches Ignite Program Immediately

ZKSync is experiencing a robust surge in Total Value Locked (TVL) on its Layer 2 platform, driven by the ambitious Ignite program. This initiative aims to distribute 300 million ZK tokens (worth $60 million) over nine months to stimulate liquidity on the platform.

The program is being rolled out in phases, with Phase 1 running from January 6 to March 31. During this phase, 100 million ZK tokens (equivalent to $20 million) will be allocated to users providing liquidity on decentralized exchanges (DEXs), lending platforms, and derivatives platforms within the ZKSync Era ecosystem. The remaining tokens will be distributed in subsequent phases.

Several prominent platforms have joined the program, including leading DEXs like SyncSwap, Uniswap, and PancakeSwap, as well as the derivatives platform Holdstation and the lending protocol Aave. According to DeFiLlama, these efforts have already yielded significant results, with ZKSync’s TVL increasing by nearly 90% in the first week of January 2025, rising from $97 million to $184 million.

As a pioneering Layer 2 solution, ZKSync is elevating decentralized applications on Ethereum through its ZK Rollup technology. By batching and processing multiple transactions off-chain, this technology significantly enhances throughput while ensuring low costs and high security.

Related: Nearly Half of zkSync Airdrop Recipient Wallets Have Sold ZK Tokens

However, ZKSync faced challenges following a major airdrop in June 2024, where 3.6 billion tokens were distributed. Instead of driving the anticipated growth, the airdrop led to capital outflows and a decline in activity.

The 7-day average active addresses plummeted from over 200,000 in July 2024 to just 30,000 by the end of December. This trend was also observed across other ZK Rollup networks like Linea, Scroll, and Starknet, with Linea currently leading in active user numbers.