Why ZKsync is Throwing in the Towel—And Other Shocking Developments!

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What to know:

  • With a cloud of bearish market conditions looming ominously, ZKsync has decided to bid adieu to its liquidity rewards program.
  • Poor Total Value Locked (TVL) on ZKsync has plummeted by approximately 50% since the 30th of January, whilst the gallant ZK token has seen a decline of 35% in mere weeks. It’s quite the tragedy, is it not? 😢
  • In a rather ambitious turn, ZKsync shall redirect its attentions to the Elastic Network, a delightful ensemble of several chains nestled within the ZKsync realm.

Alas, the Layer-2 network ZKsync has announced, in what one might call a most unexpected twist, the cessation of its Ignite Program—previously a source of delight for users who earned rewards by providing liquidity. It seems our dear market has taken a decidedly bearish turn, forsaking all joy.

“After careful deliberation, the DeFi Steering Committee (DSC)—those noble custodians—has resolved not to renew Ignite for a Season 2. Thus begins the sunsetting of the program as of March 17th, 2025, disabling rewards for period 6,” ZKsync has declared on the platform known as X. Quite the bombshell, I daresay!

Furthermore, they elucidated that their long-term vision now orbits around the Elastic Network, a curious fabric woven from multiple chains, each contributing to the ZKsync ecosystem. One can only imagine the caution with which they must tread! ⚖️

“Regrettably, our navigation through this bearish market resembles a game of charades—most perplexing!” they lamented. “Much like our fellow ecosystems, ZKsync has opted for a prudent approach, tightening expenditure in light of current circumstances while striving for sustainability. It is, indeed, better to save wisely than to recklessly battle the headwinds.”

As for the Total Value Locked (TVL) on ZKsync, it has succumbed to a considerable 50% reduction since the end of January, as the broader cryptocurrency realm finds itself in the clutches of a correction, leading Bitcoin and Ether to lose 13% and 27% of their respective market caps. What a jolly mess! 🎭

And not to be forgotten, the valiant ZK token has taken a dramatic nosedive of 35% in this same timeframe. Truly, one can scarcely recall a more tumultuous affair!

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2025-03-14 15:18