DeFi Tokens, Shiba Inu Clones Populate zkSync as Locked Value Climbs to $100M

The newly-launch zkSync Era blockchain is seeing brisk activity as value locked on the network crossed $100 million this weekend amid a flurry of new token launches.

L2Beat data shows over $69 million worth of ether (ETH) and nearly $30 million in USD Coin ($USDC) stablecoins have been locked on the network. The amount is likely distributed among several zkSync-based projects for purchasing ecosystem tokens or providing liquidity to exchanges on the network.

Over 3.3 million transactions have been conducted on the network since its March 24 launch. The network has a speed of 4.4 transactions per second.

In late March, zkSync was made available to the public. The network supports the so-called ZK rollups, which are a type of blockchain scaling system based on cryptography known as zero-knowledge proofs.

These features are seen as a key advance in speeding up blockchain transactions and reducing the cost of network activity.

Populating the zkSync ecosystem are decentralized finance (DeFi) tokens, which power lending, trading and borrowing services, and memecoins fashioned after the popular Shiba Inu dog breed.

DeFiLlama data shows SyncSwap and Mute, both decentralized exchanges (DEX), hold over $30 million in locked tokens. Mute’s native MUTE tokens have a market capitalization of $47 million, while SyncSwap has not issued tokens as of early April.

Over $19 million is locked on SyncSwap’s liquidity pool for $USDC and ether – which is paying annualized yields of 46%, or one of the highest figures in the crypto market as of Monday.

As such, memecoins are making a mark as well. DEXScreener data shows tokens such as ZKDoge, ZKInu and ZkSync SHIB have attracted millions of dollars in trading volumes since their recent launches.

Traction on these memecoin tokens has been tepid so far, with highly-volatile prices and market capitalizations of under $5 million.

Some say the zkSync launch has been muted relative to the hype, however.

“The recently launched zkSync Era mainnet is a sign that the evolutionary trend in the overall blockchain ecosystem is unimpeded, however, the low number of projects building on it is a sign that the Web3.0 world isn’t fully prepared to welcome this innovation for now,” said Maia Benzimra, head of Institutional Marketing at SpoolDAO, in a Telegram message.

Benzimra added that adoption may surge quickly as and when more innovative projects are built for users.

“The trend can change within the twinkling of an eye when innovative products building solutions that address the core needs of users are designed and launched. zkSync is notably a major upgrade for addressing the scalability of the Ethereum protocol and in no time, it is bound to find its rhythm and carve out a functional niche for itself in the ecosystem,” Benzimra said.