The ZKSync Era is currently in its first post-launch dates, during which the price of the new ZK asset will be determined. The first days of selling, buying, or holding may set up ZK for success or failure. At the same time, the ZKSync ecosystem of apps is thriving.
ZKSync Era functioned for a long time as a tokenless protocol, building a list of decentralized apps. After the token launch, the protocol locked around $136M in value, distributed over multiple emerging DeFi apps.
Read: ‘Airdrop hunter’ made $750,000 on ZKsync (ZK) airdrop
Three of the five top decentralized apps on ZKSync Era have grown their user base in the past week.
1/ With everything happening at #ZKsync and all the allocations and preparations for the ZK airdrop, let's look at the top 5 dapps on @zksync in the last 7 days:1️⃣ @syncswap2️⃣ @carv_official3️⃣ @layer3xyz4️⃣ @SpaceSwapTech5️⃣ @koi_financeData 👉 https://t.co/rGExo1UhDt pic.twitter.com/Lafl9zIAWR
— DappRadar Insights (@InsightsByDR) June 17, 2024
The entire ZKSync Era network hosts 2.38M wallets. However, the platform is still building up its activity, as only limited deposits to its bridge exist. Sometimes, the chain’s bridge sees only a few dozen users. The ZK Bridge has slowed down significantly in the past months.
ZKSync Era faces problems with node services
The ZKSync Era blockchain wants to prove that its activity is organic instead of based on bots and airdrop farmers. The blockchain also faces technical issues after the launch of the ZK token. Hours after the start of trading, even Binance announced problems with their ZKSync node.
The main blockchain also stated it is experiencing difficulties due to problems with nodes and a temporary increase in network load. The ZKSync blockchain explorer shows more than 640K active accounts as of June 17. Based on that data, ZKSync is not actually a ghost chain and may return users in the future.
(1/2) The network is currently under high load. Some RPC services may experience degraded performance.Teams are working to increase RPC capacities.Stay tuned for updates.
— ZKsync (∎, ∆) (@zksync) June 17, 2024
One reason for the network load is the SynSwap DEX, the main market of the ZKSync ecosystem. As ZK trading started, the market increased its volumes by 2,358% to above $110M. More than 70K users are connecting to the DEX.
Other metrics, however, show that ZKSync actually hosts only a few dozen active users, after accounting for 3.4M total wallets interacting with the network over time. ZKSync measured its greatest activity in pre-airdrop periods when the promised ZK allocation was tied to using the network and paying fees.
Additionally, users are still discovering wallet clusters that have received significant ZK holdings from the airdrop. Previous users who have fulfilled tasks on the ZKSync network report much lower airdrops or no tokens.
Someone received an #airdrop of 3.01M $ZK($753K) via 85 wallets!This airdrop hunter then deposited 2.71M $ZK($678K) into #Binance and sold 300K $ZK for 20 $ETH($69K) via #SyncSwap.https://t.co/U4OKb7bmVWhttps://t.co/VAPmnj9gsj pic.twitter.com/x8YUPAspbK
— Lookonchain (@lookonchain) June 17, 2024
On its side, ZKSync still claims that some of the reports of the unfair airdrop are driven by bots. Yet the transactions seen from wallet clusters are still on the blockchain. The wider community of ZKSync is still considering the airdrop unfair, especially after spending on fees and participating in quests to earn ZK tokens in the future.
Is ZK for holding, trading, or immediate selling?
As with other airdrops, the ZKSync community is divided in its strategies. New tokens may face immediate selling or become meme tokens. The ZKSync community has not been awarded enough tokens to hold, and it is up to the newly created whales to stop the selling.
Also read: ZK Nation addresses community’s concerns on ZKsync airdrop
The recent data by Nansen reflect the status of ZK trading 48 hours after launch. So far, fewer than 30% of owners have decided to hold. Most have sold their holdings in whole or in part.
It's been more than 24 hours after the $ZK airdrop, so what have the top 10,000 recipients done with their tokens?– 28.8% haven't sold any ZK– 30.1% have moved or sold some of their ZK from their wallet– 41.1% have moved or sold all their ZKhttps://t.co/MfHP0M7zxi pic.twitter.com/R7s1GTLKXm
— Nansen 🧭 (@nansen_ai) June 18, 2024
The top ZK recipient sold 11.2% of their holdings, and another top account with 5.6M ZK sold around 20% of its holdings.
The selling from large and small recipients continued to depress the ZK market price. ZK continues to trade at $0.21, breaking expectations that it would reach $1 soon after the launch. The token peaked at $0.30 before sliding.
Binance holds ZK in highly liquid pairings, with as much as $1M in liquidity for 2% slippage. Around 40% of all ZK volume depends on Binance trading.
The ZK/WETH pair reports more than 9M in liquidity, and retains a similar price at $0.21, with more than $53M in reported daily volumes. Currently, only 17.5% of all ZK is in circulation, while investors and the team hold another 34% of all tokens, which will be unlocked over time.
Cryptopolitan reporting by Hristina Vasileva