Altcoin
Assessing zkSync’s growth in L2 landscape as activity on the protocol surges
ZkSync manages to see massive interest in its protocol as users start to flock toward its network. The new developments in the protocol could improve retention amongst its users.
- Activity on zkSync started to soar, new developments were made on the network as well.
- The spike in activity could be due to speculation around the airdrop.
zkSync has been gaining a large amount of traction after its launch. Despite facing a few setbacks in the past regarding block production, the protocol appears to be back on its feet.
Users get interested
According to NansenAI’s data, net deposits from more than 450,000 unique wallets were added to the network, accumulating to $250 million.
A significant proportion (41%) of the activity comprises of new wallets created within the last month, potentially indicating a sense of caution when interacting with a new chain, or a motivation to engage in airdrop farming.
Additionally, the majority of deposits per wallet remain under $1,000, with 44.5% of such deposits amounting to less than $100.
Source: Nansen
Following the launch of the zksync Era, the count of daily unique depositors achieved a peak of over 41,000 on 26 March. However, since then, this number has been decreasing gradually. Whales exhibited similar behavior as well.
Source: Nansen AI
This surge in the number of unique depositors helped increase the TVL of zkSync. According to L2Beats’ data, the TVL on the network grew from $235 million to $257 million over the last week.
Source: L2Beat
Some new tech
zkSync’s new changes to its technology could also impact user interest in the protocol. According to zkSync’s 26 April tweet, they would be adding Account Abstraction to its protocol.
zkSync Era’s account abstraction simplifies the user experience for developers by upgrading externally owned accounts to smart contract accounts. This enables developers to provide features like biometric verification and social recovery, automate payments, and reduce friction in transaction approvals.
With batch processing, users can sign off on multiple transactions at once, and benefit from automatic and scheduled transfers, all while maintaining self-custody.
However, it is important to note that the high activity on the network could also be a result of addresses anticipating an airdrop.
There could be a decline in activity on the zkSync network if, after the airdrop, users begin to flock to other networks. Protocols such as Arbitrum, Optimism and StarkNet could attract these users.
