ZKsync Ends Liquidity Rewards Program Due to Market Downturn

The blockchain's total value locked has declined by approximately 50% since January 30.

Key Points:

• ZKsync is discontinuing its liquidity rewards program due to unfavorable market conditions.
• The platform’s total value locked (TVL) has declined by approximately 50% since January 30, while the ZK token has dropped 35% in value over the past month.
• ZKsync will now prioritize the development of the Elastic Network, a system of interconnected chains within its ecosystem.

Layer-2 network ZKsync has decided to discontinue its Ignite Program, which incentivized liquidity providers, citing challenging market conditions.

"Following a thorough review, the DeFi Steering Committee (DSC) has chosen not to renew Ignite for a second season and will begin phasing out the program on March 17, 2025, by disabling rewards for period 6," ZKsync announced on X.

ZKsync emphasized that its long-term strategy revolves around the Elastic Network, a system of interconnected chains within its ecosystem.

"We're currently facing a bearish market," the team stated. "Like many other ecosystems, ZKsync is adopting a more cautious approach to spending in the short to medium term to adapt to these shifting conditions. To ensure sustainability, we're refining our focus and allocating resources more efficiently rather than resisting market challenges."

ZKsync's total value locked (TVL) has dropped by approximately 50% since Jan. 30, reflecting the broader market downturn. Over the past month, bitcoin and ether have seen their market caps shrink by 13% and 27%, respectively. Meanwhile, ZKsync’s native token (ZK) has fallen by 35% during the same period.