zkSync's Strategy to Address Layer 2 Competition and Community Dynamics Analysis

Author: Haotian

With Blast launching a vampire-style "attack" and Starknet rolling out major tokenomics incentives, although zkSync's official stance remains seemingly calm, considering the broader environment—technical progress, competitive landscape, market conditions, and community expectations—it’s clear that zkSync is being forced into making some passive "changes." Here are my personal insights:

1) In the short term, Blast—the so-called "pseudo-layer2"—has indeed injected vitality into the entire Layer2 ecosystem. Judging by TVL data, zkSync has reversed its declining trend and steadily grown to nearly $600 million. Other Layer2 platforms such as Linea, Mantle, Scroll, and Aevo have also seen overall growth.

This suggests that rather than acting as a vampire, Blast functions more like a catalyst—a "catfish" stirring up competition—and has effectively awakened several emerging Layer2 projects, especially zkSync. After all, the longer a high-profile project remains inactive, the stronger the backlash it will face.

2) Initially, there was hope that zkSync would progressively open up core components such as its Sequencer, Prover, and Validator—milestones previously considered prerequisites for issuing a token.

Now, however, technical advancements in ZK-Rollup no longer serve as a driving force ("Drive") in the market. It's highly likely that zkSync will shift focus away from technological breakthroughs as its primary selling point and instead tackle the tough challenge of building out its ecosystem.

The market has become desensitized to narratives around ZK-Rollups and OP-Rollups. Few people care whether OP-Rollups have undergone real battle-tested challenges or if their sequencers are decentralized. Likewise, the sophisticated design of ZK-Rollup provers or advantages in EVM equivalence—once key talking points—are now silenced in the face of weak market activity and underdeveloped ecosystems.

3) Regarding its ecosystem, sub-ecosystems within zkSync are even more eager than the official team. I’ve previously argued that zkSync must do everything possible to nurture a breakout derivative platform. Now, we’re starting to see increasing momentum in the derivatives space.

One month later, Holdstation couldn’t wait any longer and launched a token incentive program. As a result, its daily derivatives trading volume surged past $20M, with APY peaking at 69% and 30-day fees reaching $200K. Its tokenomics are forming a flywheel: gas subsidies attract users, increased trading generates more fees, which in turn fund further subsidies.

What impresses me personally is that Holdstation leverages account abstraction wallets, using core Paymaster + Batch Transaction features to implement gas rebates for users—an approach strikingly similar to Starknet’s upcoming token-based rebate strategy.

In fact, the Paymaster function inherent in account abstraction naturally supports various operational incentive strategies, potentially offering significant benefits in addressing the lack of activity in ZK-Rollup ecosystems.

Anyway, at a time when zkSync’s ecosystem is dominated by DEXs and feels stagnant, Holdstation’s self-sustaining effort to revitalize the scene is commendable. Not coincidentally, this may mark the beginning of a broader uprising within the zkSync ecosystem. Could Derivio—backed by Binance—and GRVT—a layer3 appchain heavily supported by zkSync—be preparing something big?

4) As analyzed earlier, both Starknet and zkSync are general-purpose ZK-Rollups designed for scalability, meaning they face similar challenges. Therefore, the market reaction to Starknet’s airdrop will directly influence zkSync’s own airdrop criteria and timing.

While zkSync’s metrics appear “successful” on the surface, Alex didn’t sound very confident saying this during a podcast. He knows well that much of zkSync’s current activity comes from bounty hunters, and users are only willing to pay gas because they expect an airdrop.

Right now, zkSync has only given the market one controversial tool—the “Genie.” But in my view, zkSync’s airdrop criteria won’t be limited to Genie alone. From multiple interviews and tweets, hints suggest zkSync values one key factor: Are you a net new user to Layer2?

zkSync itself uses seamless account abstraction to lower entry barriers and employs NFT campaigns like Pudgy Penguins for community growth. Moreover, Matter Labs members have recently been vocal about account abstraction—all pointing toward one possibility: using an account-abstraction wallet could become an airdrop criterion.

After all, the fundamental value of Layer2 lies in user expansion. If Layer2 merely becomes a playground for existing Layer1 users stacking Lego-like applications, its significance diminishes. If Starknet’s airdrop successfully activates sustained user engagement through rebates, I suspect zkSync will follow suit with similar tokenomics.

5) Recently, zkSync quietly completed the Boojum upgrade and integrated both STARK and SNARK proofs (aligning with my initial analysis). The direct outcome: over the past 30 days, zkSync’s gas fees have dropped by approximately 30%, bringing them on par with Arbitrum. zkSync already had an edge in user experience; this reduction in gas fees will further expand its user base and traffic.

In fact, Dune data shows significant increases in zkSync’s active addresses and transactions recently. While lower gas fees do affect user interaction incentives (especially for bounty hunters), official campaigns tied to potential airdrops might prove even more effective.

I believe zkSync will make strategic moves in community initiatives.

That’s all.

Overall, over half a year since its mainnet launch, zkSync has firmly secured its place among the top two ZK-Rollups, even surpassing Starknet in market expectations. However, prolonged exposure under the spotlight brings immense public scrutiny and pressure. To stay competitive amid rapidly shifting Layer2 dynamics, zkSync must continuously evolve and adapt.

Note*: Projects mentioned in this article are not investment recommendations. Please conduct careful analysis and independent judgment before investing.