ZKsync Kills Its Own Genesis Layer. The L2 War Just Got Brutal.
ZKsync is officially sunsetting ZKsync Lite by 2026. This is not a simple upgrade; it is a strategic execution of the first-ever zero-knowledge rollup deployed on $ETH. Lite, launched in 2020, proved that ZK scaling was possible, but its limitation—the inability to run smart contracts—made it obsolete the moment zkEVMs like ZKsync Era arrived.
The market has spoken: partial solutions do not survive. Even though Lite still holds $50 million in assets, activity has evaporated. The full focus is now on Era, which allows for robust application deployment.
However, the path forward for $ZK is not smooth. This announcement comes while the ecosystem is dealing with challenges, including major protocols considering withdrawal due to low revenue generation. The Layer 2 landscape is consolidating. Projects must deliver unmatched utility and liquidity or face the same fate as Lite. This is a crucial pivot point for ZKsync to prove its long-term viability.
Not financial advice. Do your own research.
#ZKsync #Layer2 #Ethereum #Scaling #CryptoNews
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