Launched in March 2023, ZKsync Era is an Ethereum Layer-2 solution that processes transactions off-chain while maintaining security and decentralization through cryptographic proofs.

ZKsync's Elastic Network vision, introduced in the third quarter of 2024, aims to unify ZK-powered blockchains to enhance scalability, reduce transaction costs, and improve interoperability.

Matter Labs raised $258 million from various investors to support ZKsync's mission, which includes features like account abstraction and cross-chain interoperability.

Despite these advancements, average daily transactions fell by 42% and active addresses by 63% in Q4, primarily due to reduced incentives following the airdrop.

The ZKsync ecosystem's DeFi total value locked (TVL) reached $97 million, with expansions into gaming and AI applications among other sectors.

The overall Q4 report highlights ZKsync's growth and innovation trajectory, emphasizing institutional adoption, community engagement, and technological advancements.

Technological advancements in Q4 included the announcement of BoojumVM, which aims for 10,000 transactions per second, and the integration of AI with SpaceandTimeDB for trading applications.

In Q4 2024, ZKsync's market capitalization grew by 35% quarter-over-quarter to $676 million, with the token price rising to $0.18.

As of February 11, 2025, ZKsync Era has established itself as the second blockchain for real-world assets (RWAs), holding 28 RWAs valued at $1.9 billion and capturing approximately 25% of the market share.

ZKsync's Elastic Network supports the migration of large-scale projects like Treasure DAO and Lens, further enhancing its ecosystem with gaming and social media integrations.

Institutional adoption of ZKsync technology has surged, exemplified by Deutsche Bank's Project Dama 2 and migrations from Blockchain Capital and Tradable.

The ZKsync ecosystem is built on the ZK Stack, allowing developers to create customizable and interoperable blockchain networks known as ZK chains.

Governance proposals in Q4 included the ZKsync Ignite proposal to allocate 325 million ZK tokens to enhance DeFi liquidity, showcasing community-driven decision-making.

Community engagement initiatives, such as the 'Syncmas' NFT campaign, have strengthened user interaction during the holiday season.

Transaction fees on the ZKsync Era protocol decreased by 4% quarter-over-quarter, with significant reductions attributed to the implementation of EIP-4844.