Ethereum’s zkSync Sets New Record with 20 Million Trading Volume in 7 Days

03/25/2023 02:46 • Blockchain Briefs • 135 views

On March 25th, according to data from Dune Analytics, the trading volume of zkSync, the Ethereum Layer 2 expansion solution, reached about 2025135 transactions this week, setting a record high on the average daily trading volume for seven days. Currently, the total trading volume of zkSync has reached nearly 20 million, with over 1 million transactions on the Ethereum chain. In addition, the total amount of ETH/ERC 20 deposited by zkSync exceeded $840 million, and this week’s deposit amount was approximately $41467531.

Data: The trading volume of zkSync this week exceeded 2 million transactions, and the deposit scale of ETH ERC 20 exceeded $40 million

In recent years, Ethereum has become one of the most popular blockchain platforms for decentralized applications (dapps) due to its unmatched scalability, security, and flexibility. However, with its growing user base, Ethereum has also faced certain challenges, including high gas fees, slow transactions, and scalability issues. To address these challenges, the Ethereum community has been exploring different Layer 2 solutions that can help scale the network and reduce congestion. One such solution that has seen tremendous growth recently is zkSync.

What is zkSync and How Does it Work?

zkSync is a Layer 2 scaling solution that utilizes zero-knowledge proofs (ZKPs) to enable fast and cheap transactions on the Ethereum network. Zero-knowledge proofs are a cryptographic technique that allows parties to verify certain information without revealing the actual data. This enables zkSync to perform transactions off-chain, making them much faster and cheaper than the standard Ethereum transactions.
When a user wants to make a transaction on zkSync, they deposit their funds into a smart contract on the Ethereum mainnet. From there, they can perform transactions on the zkSync network, which are verified and settled by the zkSync validators. Once the transactions are settled, the user can withdraw their funds back to the Ethereum mainnet.

zkSync Sees Record Trading Volume

According to data from Dune Analytics, zkSync’s trading volume hit a record high on March 25th, reaching over 2 million transactions in a week. The total trading volume of zkSync now stands at nearly 20 million, with over 1 million transactions on the Ethereum chain. This is a significant milestone for both the Ethereum network and zkSync, as it demonstrates the growing demand for scalable and efficient Layer 2 solutions.

zkSync’s Deposits Exceed $840 Million

In addition to its impressive trading volume, zkSync’s deposits have also been growing rapidly. The total amount of ETH/ERC 20 deposited by zkSync has exceeded $840 million, with over $41 million deposited in just the past week. This indicates that more and more users are leveraging zkSync to perform transactions on the Ethereum network and take advantage of its fast and cheap transactions.

What Does This Mean for Ethereum and the Blockchain Industry?

The increasing adoption of Layer 2 solutions like zkSync is a crucial step towards achieving mass adoption of blockchain technology. As more users migrate to these solutions, Ethereum can scale more efficiently, reducing congestion and lowering gas fees. This will make Ethereum more accessible to a wider range of users, ultimately driving its growth and success.
In conclusion, zkSync’s growing trading volume and deposits indicate a bright future for both the Ethereum network and Layer 2 solutions. As the blockchain industry continues to evolve, it will be exciting to see how these solutions continue to shape the future of decentralized finance and blockchain technology.

FAQs:

Q: What makes zkSync different from other Layer 2 solutions?
A: zkSync utilizes zero-knowledge proofs to enable fast and cheap transactions off-chain, making it one of the most efficient Layer 2 solutions on the Ethereum network.
Q: How does zkSync ensure the security of its transactions?
A: zkSync utilizes a network of validators to verify and settle transactions, ensuring that they are secure and trustworthy.
Q: What impact will Layer 2 solutions like zkSync have on the future of blockchain technology?
A: Layer 2 solutions like zkSync will play a crucial role in scaling the Ethereum network and making it more accessible to a wider range of users, ultimately driving the growth and success of the entire blockchain industry.

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