The emergence of Layer 2 scaling solutions has led to many cryptocurrency enthusiasts flocking to these networks, attracted by their high speed and low transaction fees. One such scaling solution is zkSync Era, host to the most anticipated airdrop in the crypto community.
zkSync is a Layer-2 scaling solution for Ethereum that aims to improve the network’s speed and scalability while reducing transaction costs. It is based on zero-knowledge proofs, a cryptographic method that allows for privacy-preserving transactions without revealing sensitive information.
Despite zkSync still in its infant stage, early whales appear to be betting big on the Layer 2 network, according to a report by Nansen Research. The report revealed several early adopters are seen securing an average of 32% of their crypto holdings on the network.
Significant Amount of Idle Capital on ZkSync
According to the report from Nansen Research, the top 25 early whale bridgers to zkSync Era have an average of 32% of their total holdings on zkSync. Holdings of these early adopters comprised mainly of spot Ethereum token (ETH), stablecoin USDC, and a distant third of MUTE, a new privacy-focused cryptocurrency.
The high percentage of holdings on the platform suggests that these investors have a significant amount of idle capital waiting to be deployed, according to Nansen Research.
Related Reading: Ethereum Scalability Solution zkSync Deploys Tesnet, Cheap Network Fees Imminent?
According to the report, the majority of the activity on zkSync is centered on decentralized exchanges (DEX), particularly liquidity provider
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Author: Edyme
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