As Optimism, Arbitrum, Starknet, Base, Scroll, and more L2 chains join the PVP battle for market dominance, not all advanced technologies will experience a bull run.
1/ Cryptocurrencies tend to repeat the story of the last cycle. The scalability debate between Ethereum and Layer1 attracted new capital in the last cycle.
“Faster, safer, cheaper”
The “scalability race” among L2s is expected to trigger capital inflows in this cycle.
2/ In fact, the L2 race (also known as the “L2 war”) has already begun.
(a) Since the Dencun upgrade, Ethereum rollup daily transaction volume has increased to 2 to 3 times the previous level
(b) Currently, 55 projects have been launched on L2beat, and several new L2s are about to be launched.
Which projects should we pay attention to? I believe that "ZK Scaling" will dominate in the second half of 2024.
3/ Vitalik also said, “ZK is obviously the ultimate goal.”
ZK L2s can theoretically process an unlimited number of transactions simultaneously, allowing many rollups to achieve millions of TPS.
The key point is that ZK systems can scale horizontally (reasonably), while optimistic systems cannot.
4/ Optimistic rollup has some limitations:
- 7-day challenge period for transaction finalization
- A large amount of data is released to L1, reducing efficiency
- Limited horizontal scalability
- Each L2 needs its own full node to work properly
- Requires expensive intermediaries
- Low level of decentralization
This is why ZK rollup is the next generation technology.
5/ zkSync is not just a phantom technology — it has actual superior on-chain performance and has real-world use cases.
Let me give you some examples.
6/ Late last year, the L1/L2 project experienced a network outage due to a nameplate incident.
While zkSync also experienced downtime, transaction fees for other projects spiked while zkSync’s fees dropped.
7/ An example of the limitations of OP-Rollup is Base rollup, which saw fees surge and internal gas limit issues after the Dencun hard fork.
These issues show why people are talking more about “horizontal scalability”, which makes zkSync an important project to watch.
8/ Furthermore, zkSync has shown significant competitiveness in terms of mass adoption.
-ENS Laboratory
- Circle
- Lens Protocol
- http://Crypto.com
Many industry leaders have chosen zkSync as a partner. Although zkSync is a latecomer, I believe this trend will accelerate after the launch of the $ZK token.
9/ Personally, I am optimistic about $ZK for three reasons:
- Two-thirds (about 67%) of the ZK token supply will go to the community
- $ZK is used as the native gas token
- Airdrop allocations are designed to attract both short-term airdrop seekers and long-term investors.
I think - for those with "scale" (whales), $ZK could be an attractive new currency to bet on ahead of a bull cycle.
10/ $ZK Trading Strategy:
1) The offering price is less than $5 billion ($0.24~) - undervalued)
2) Launch of 5 billion to 10 billion FDV (30 million to 48 million) - Bidding Area
3) Market cap exceeds $25 billion for the first time (>$1.2 billion) — Overvalued
While market conditions should be considered - (a) better-than-expected CPI/PPI, (b) expected rate cuts this year, (c) ETH ETF S1 approval soon, and (d) the upcoming U.S. presidential election, I think FDV below $10 billion could be a good choice.
in conclusion
Vitalik Buterin mentioned that applications built today need to align with the vision of “Ethereum of the 2020s.” — In my opinion, zkSync is the project that best fits this vision right now.
zkSync has the potential to provide superior scalability, performance, and security, enhancing the overall user experience and setting it apart from other systems often categorized as “L2”.
There is still half an hour left before the new coin goes online. It is one of the four kings. You can rush for it when it goes online! If you don’t know how to rush, follow Dabai!
