At the time of writing, the price action of ZK, the native token of ZKsync, showed signs of stagnancy, up $0.05% in 24 hours.
Layer-2 Ethereum scaling protocol, ZKSync, debuted an upgrade to its ecosystem. The project will now shift to an “elastic chain” architecture which marks a groundbreaking evolution from a singular zero-knowledge (ZK) rollup chain to a dynamic network of multiple ZK chains. The move is characterized by interoperability and a unified user experience.
The v24 upgrade, which went live on June 7, is a pivotal part of the ZKsync 3.0 roadmap. It reconfigures ZKsync’s native bridge into a token vault, enhancing connectivity among the expanding array of ZK chains within its ecosystem.
A controversial airdrop preceded this upgrade, where ZKsync distributed 3.675 billion ZK tokens to early users of the L2 network. Over 17.5% of the total ZK token supply of 21 billion tokens was distributed. This distribution acted as an incentive for early adopters and developers.
At the time of writing, the price trajectory of ZK, the native token of ZKsync, showed signs of stagnancy. As per CoinMarketCap, ZK is up 0.05% in the last 24 hours. The price stands at $0.1624 as of 5:16 am ET, Tuesday, June 25. The trading volume has surged by 41.16% in the last 24 hours, reaching $278 million.
With a market cap of $596 million, ZK is currently ranked 108th in the market. Despite hitting an all-time high of $0.3098 on June 17, 2024, ZK has since declined by 47.64% from that peak. Over the past seven days, the price has fallen by 27.45%, following a 43.46% decline over the past 30 days.
On the other hand, the Relative Strength Index (RSI) for ZK reads 33.28 which means that the altcoin is nearing the oversold region. Traditionally, when an asset is being oversold, buyers can gain entry into the price action at reasonable prices.
- Source: TradingView
ZKSync Era to Initiate the New Upgrade
The elastic chain architecture is designed to offer a seamless operational experience akin to a single blockchain. Transactions will require only a single wallet confirmation, eliminating the need for network switching or manual asset bridging.
The project’s flagship rollup, ZKsync Era, will start the new upgrade which will serve as the foundational layer. By 2024-end, the project aims to include over 20 chains, all operating on the mainnet and developed using the ZK Stack software kit. Notable projects such as Lens Protocol, QuarkID, PlayFi, GRVT, Cronos zkEVM, and Nodle are among those expected to be part of this expansive network.
The concept of an elastic blockchain, first introduced by ZKsync developers at the 2022 SmartCon event, focuses on enhancing proof aggregation and cross-chain interoperability. ZK Stack, which enables the network to operate as a coherent multi-chain environment that intuitively functions as one entity, forms the basis of this upgrade.
The elastic chain architecture will implement the Ethereum Multi-Chain Address (EMCA) standard, designed to simplify address identification across various chains by extracting specific chain details from users.
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