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Title: zkSync’s Market Dominance Declining as User Participation and Profitability Decrease
Recent discussions in the market have been sparked by news about zkSync’s upcoming token release and airdrop rules. This article from PANews reviews the data of zkSync this year and finds that although zkSync still maintains a leading market position, the willingness of users to participate is decreasing, and the profitability is also significantly decreasing. These trends are closely related to the continuous years of airdrop PUA, poor quality of ecological projects, and neglect of user rights.
High TVL Ecological Projects are Few and Monotonous, On-chain Profits Depend on Gas Revenue but Have Declined Significantly
According to L2BEAT data, as of May 6th, the total locked value (TVL) of zkSync Era has reached nearly $850 million, an increase of about 44.1% since the beginning of the year, ranking eighth among L2 projects.
However, zkSync’s high TVL ecological projects are relatively few and limited in variety. According to zkSync’s official website, as of May 6th, although it has 243 ecological projects covering DeFi, gaming, trading markets, NFTs, social, wallets, and DEXs, DeFiLlama data shows that only four zkSync projects have a TVL exceeding ten million dollars, accounting for nearly 66% of the overall TVL. At the same time, the top 10 TVL projects mainly come from DEXs and lending tracks. This ecological dilemma significantly affects the level of user participation.
In terms of user numbers and funds, zkSync Era has achieved good growth this year. According to Dune data, as of May 6th, the number of zkSync Era users has reached nearly 3.13 million, an increase of 16.3% since the beginning of the year. The total amount of ETH bridged has exceeded 3.22 million coins, an increase of 38.8% since the beginning of the year. However, the average amount of ETH bridged per user is only 1.37 coins, with over 80% of users bridging less than 1 ETH and only 1.3% of addresses holding a balance of over 10 ETH. Therefore, although the airdrop expectation of zkSync still has some appeal, users tend to prefer low-cost investments.
The participation of a large number of “rug pull” participants has also brought significant profits to zkSync Era. According to the latest data from Dune, as of May 1st, zkSync Era has generated approximately 1,848 ETH in profits from gas in the past four months, accounting for 10.3% of the total profits of the Rollup chain. However, there is still a significant gap compared to projects like Base, Arbitrum, and Scroll, and the monthly profits have shown a significant decline.
Among them, since the beginning of this year, zkSync Era has received a total of 7,678 ETH in transaction fees, accounting for nearly 17.3% of the total. From the monthly changes in transaction fees, there is a continuous monthly decline. The fees captured in April decreased by approximately 88.9% compared to January. The cost of sending transactions to L1 has decreased by nearly 96.2%, performing better than competitors such as Arbitrum, OP Mainnet, Base, Starknet, and Linea. The cost of verifying proofs on L1 reached 1,541 ETH this year, accounting for 49.7% of the total. In other words, zkSync Era’s on-chain profits mainly come from gas revenue but have significantly decreased.
When it comes to user rights being ignored and the lack of action from the official team, the trust of the zkSync community is being eroded. Despite numerous on-chain accidents and rug events in the crypto dark forest, the lack of care for user rights from zkSync ecological projects and the official team has become one of the important reasons for the difficulty in expanding its market size.
For example, in the past, the zkSync lending protocol Eralend suffered a flash loan attack resulting in a total loss of approximately $3.4 million. Not only was the stolen funds not recovered, but there was also no compensation for the users. After the project was sold to a Chinese team, zkSync only issued a risk warning in the Chinese community. The zkSync ecological lending platform xBank Finance, after suffering a hacker attack resulting in a loss of $550,000 and near-zero liquidity, stated that they were contacting the attacker to recover the user funds through a bug bounty program. However, they did not mention anything about compensating the users. The decentralized entertainment platform ZKasino was questioned for forcefully converting over 10,000 ETH user deposits into native tokens. Afterward, the official team did not respond to any rule changes or the destination of the funds and even transferred the funds in batches. Currently, the Dutch Fiscal Investigation and Intelligence Service has arrested a suspect in the ZKasino fraud case and seized €11 million in assets. However, ZKasino was debunked by Ethereum co-founder Vitalik Buterin, who stated that the project did not use any ZK technology and was merely hosted on the zkSync platform.
In the face of the severe damage to user interests, the zkSync team has never implemented any meaningful improvements, reflecting their poor management of the ecosystem. The low cost of wrongdoing has become one of the main reasons for the proliferation of problems in the zkSync ecosystem.
In response to this, many community members express their dissatisfaction, stating that the zkSync team has not taken up the responsibility of ecosystem construction, including supporting high-quality projects, and has allowed various rug projects to run rampant. Despite repeatedly emphasizing the importance of the community, they turn a blind eye to project misconduct and user rights, showing a greater concern for gas revenue than the community.
In conclusion, in the current densely populated L2 market, as the airdrop effect becomes less effective, zkSync will face greater challenges if it does not prioritize ecosystem construction and user interests.
Tags:
2023 market trends
zkSync
zkSync 2.0
Ethereum
native tokens
airdrop
Source link:
https://www.panewslab.com/zh/articledetails/hf9j9tof.html
Note: The views expressed in the article do not represent investment advice.