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Ethereum (ETH) remains at the forefront of blockchain adoption, powering everything from decentralized finance (DeFi) platforms to NFT marketplaces. But that growth comes at a cost.
In March 2025 alone, Ethereum processed nearly 37 million transactions, more than triple the volume on Bitcoin (BTC). With so much activity, the network is starting to show signs of strain. Users are facing longer wait times and higher fees, especially during peak periods like token launches or major protocol updates.
To get around this, developers are turning to Layer 2 solutions that can extend Ethereum’s capacity without changing its core architecture. One of the most widely used approaches today is ZKsync. Built on zero-knowledge rollups, it helps ease congestion and lower costs while preserving Ethereum’s security.
This article looks at how ZKsync is scaling Ethereum in 2025 and where it fits into the broader blockchain ecosystem.
Key Takeaways
- ZKsync is a Layer 2 solution using zero-knowledge rollups to scale Ethereum.
- It reduces gas fees and increases transaction speeds by batching off-chain activity.
- ZKsync offers near-instant finality, unlike Optimistic Rollups, which require delay windows.
- The ZK token powers ZKsync’s governance and utility and was listed in June 2024.
- Despite strong security, ZKsync still faces usability and performance challenges.
- Its future depends on broader ecosystem integration and ongoing developer improvements.
What Is ZKsync & How Does It Work?
ZKsync is a Layer 2 scaling solution for Ethereum, developed by Matter Labs. It uses zero-knowledge rollups (ZK-Rollups) to increase transaction throughput and lower costs, while still relying on Ethereum for security and decentralization.
Instead of sending every transaction directly to the Ethereum mainnet, ZKsync compresses many of them into a single proof. That helps reduce the load on Ethereum and keeps fees down.
Here’s how that process works in practice:
You send a transaction
You initiate a transaction on ZKsync. That might mean transferring tokens, interacting with a smart contract, or minting an NFT. The transaction is signed and sent to the ZKsync network, not straight to Ethereum.ZKsync processes the transaction
ZKsync receives and processes the transaction off-chain. After that, it updates the Layer 2 ZKsync wallet and contract states in real-time. You’ll be able to see the instant confirmation at this point because ZKsync doesn’t need to wait for Ethereum to finalize anything just yet.Transactions are grouped into a batch
Your transaction gets bundled together with others. This reduces how many individual operations need to be submitted to Ethereum later.ZKsync generates a zero-knowledge proof
Depending on the nature of the transaction, a ZK-SNARK or ZK-STARK is generated. This cryptographic proof confirms that all transactions in the batch are valid.The batch and proof are sent to Ethereum
ZKsync posts the zero-knowledge proof along with minimal batch data to the Ethereum Layer 1. Ethereum verifies the proof and ensures that the entire batch is valid without executing each transaction.Ethereum confirms the batch
Once the proof is verified, the whole batch is finalized. That means all included transactions are now settled and secured by Ethereum’s consensus.
Can ZKsync Solve Ethereum’s Transaction Scaling Issues?
Ethereum powers DeFi, NFTs, and a growing ecosystem of decentralized apps, but its base layer can only handle around 15 to 30 transactions per second. As traffic grows, that limitation creates congestion and higher fees. Layer 2 solutions like ZKsync aim to change that.
ZKsync uses zero-knowledge rollups to process transactions off-chain, then submits a single proof to Ethereum. The goal is faster, cheaper transactions without sacrificing security. Unlike Optimistic Rollups, ZKsync offers instant finality, which means users get confirmation without long waits.
Still, there are gaps to fill. Developer tools are still evolving, bridging between layers can feel clunky, and proof generation remains resource-intensive. Experts say these challenges could slow down broader adoption unless they’re addressed head-on.
Grigore Roșu, founder of Pi Squared and a professor at the University of Illinois, points to performance as a key bottleneck.
“Only if they significantly improve performance,” he told Techopedia when asked whether ZKsync is a viable long-term solution.
He adds that other technologies, like SP1 and RiscZero, are already approaching the ability to prove Ethereum blocks in real time and that Ethereum’s potential move toward Rust-based smart contracts could accelerate their lead.
CEO of Randamu, Erick Watson, agrees that the foundation is strong but sees real-time usage limitations. He told Techopedia:
“ZKsync’s zero-knowledge rollups are a promising long-term path, but they’re not fully production-ready for computationally intensive tasks today.”
Latency, proving costs, and complexity around off-chain automation still present real hurdles.
Watson also notes that other coordination layers are already stepping in to provide secure, scalable execution while zk-based systems continue to mature.
From a broader view, Todd Ruoff, CEO at Autonomys, sees ZKsync as an essential part of the puzzle but not the whole solution. He said:
“The cryptographic validity proofs it relies on make it structurally more efficient over time, especially as network activity intensifies. But no single solution can shoulder Ethereum’s long-term scalability needs alone.”
That means working alongside improved execution environments and decentralized data layers, not replacing them outright.
Even when compared to competitors like Optimism and Arbitrum, the picture is nuanced. ZKsync’s cryptographic strength and finality stand out, but its tooling, composability, and user experience still trail behind. Roșu points out that ZKsync offers “nearly instant finality” compared to the fraud windows required by Optimistic Rollups. But if those systems integrate their own zero-knowledge technology, “they will be fierce competitors,” he argues.
So while ZKsync shows clear promise, especially on the security and architecture side, its future depends on how quickly it can reduce complexity both for developers and for end users.
ZKsync’s Analysis & Token Price Performance
The ZKsync token (ZK) is the native utility and governance token of the ZKsync network. It plays a crucial role in protocol governance and staking mechanisms. According to CoinMarketCap, the ZKsync token price was approximately $0.064, and its market capitalization was 236.3 million as of May 26, 2025.
Since its launch in June 2024, the ZKsync price has experienced significant volatility.
After reaching its all-time high (ATH) in mid-2024, the price declined by over 78%, hitting its all-time low (ATL) in April 2025.
However, it has since recovered by approximately 16% from its ATL. The token’s performance reflects broader market trends and the adoption rate of ZKsync’s Layer 2 solutions.
ZKsync’s approach to scaling Ethereum positions it as Ethereum’s star player in 2025. The ZK token’s future performance will likely depend on the continued adoption of ZKsync’s technology, developments in the Ethereum network, and overall market conditions.
The Bottom Line
ZKsync is helping move Ethereum closer to a version that can support everyday use at scale. It reduces costs, improves transaction speeds, and supports a growing ecosystem of applications.
But building a truly scalable network also means improving the developer experience, simplifying the user journey, and making infrastructure work more smoothly in the background.
ZKsync is part of that shift. As Ethereum evolves, success will come from the combined progress of multiple tools and layers working together. ZKsync’s role will depend on how well it can integrate with this broader ecosystem while continuing to improve performance and usability.
