Vitalik Buterin Backs ZKsync: Accelerating Ethereum Layer 2 Expansion and Driving DeFi Growth

November 2025 saw

co-founder Vitalik Buterin openly support ZKsync’s Atlas upgrade, describing the initiative as “overlooked and significant” and highlighting its potential to reshape the Ethereum ecosystem, as reported by a
. This public backing, together with the Atlas upgrade’s technical progress, has sparked renewed debate about Ethereum’s Layer 2 (L2) scalability and the trajectory of decentralized finance (DeFi). For investors, the message is clear: ZKsync’s advancements are more than just minor enhancements—they represent a fundamental change in Ethereum’s approach to liquidity, transaction capacity, and cost-effectiveness.

The Atlas Upgrade: Transforming Ethereum’s Liquidity Model

The

Atlas upgrade, which debuted in late October 2025, brings a unified liquidity system that does away with fragmented liquidity pools across L2 platforms, according to a
. By granting direct access to Ethereum’s mainnet (L1) liquidity, ZKsync chains can now settle transactions instantly, minimizing slippage and improving capital efficiency. This marks a major milestone for Ethereum’s scalability, tackling the persistent issue of duplicated liquidity infrastructure on L2s. The
further highlights that the upgrade achieves speeds of over 15,000 transactions per second (TPS), one-second finality, and almost zero transaction fees. These features make ZKsync a strong contender for high-frequency DeFi trading, institutional settlements, and integration with real-world assets (RWA).

Buterin’s vocal endorsement has amplified the impact of these technical achievements, boosting ZKsync’s reputation and drawing interest from both developers and major institutions. For example, more than 30 established financial entities, including Citibank and Deutsche Bank, are said to have adopted ZKsync’s Prividium enterprise solution, as mentioned in a

. This level of institutional engagement highlights the platform’s alignment with the needs of real-time capital flows, which is crucial for DeFi’s broader adoption.

DeFi Adoption Metrics: Achievements and Hurdles

Although the Atlas upgrade has generated

, DeFi usage on ZKsync is still in its infancy. As of October 27, 2025, ZKsync recorded 10,400 daily active addresses, reflecting a 26% rise in active users over the previous month, according to the
. Nevertheless, the total value locked (TVL) in ZKsync’s DeFi platforms remains in the tens of millions, trailing behind other Layer 2 solutions such as and Optimism, as indicated by a
. This shortfall underscores the necessity for continued protocol innovation and user growth.

Even so, the

token’s recent performance has been encouraging. Following the Atlas rollout and Buterin’s support, ZK’s 24-hour trading volume soared past $700 million—a thirtyfold jump—fueled by renewed investor enthusiasm, as outlined in a
. The token’s updated design, which now focuses on value accrual through buybacks and staking rewards rather than governance, may further motivate user participation, according to a
.

Institutional Engagement and Long-Term Prospects

The Atlas upgrade’s appeal to institutions is rooted in its ability to deliver settlement speeds and reliability on par with enterprise standards. By offering nearly instant transaction finality and slashing gas fees to almost nothing, ZKsync is bridging the gap between Ethereum’s decentralized principles and the efficiency requirements of traditional finance. For instance, ZKsync’s Prividium platform has attracted major players like Mastercard, pointing to a trend toward hybrid DeFi models that combine blockchain transparency with off-chain performance, as noted by the

.

Buterin’s endorsement also carries significant symbolic value. His recognition of ZKsync’s “overlooked and significant” contributions, as referenced in the

, fits with Ethereum’s broader mission to scale while maintaining security and decentralization. This narrative could help attract more developers and investment, further accelerating the ecosystem’s expansion.

Conclusion: A Promising Investment Prospect

For those considering investment, ZKsync’s Atlas upgrade marks a significant milestone in the evolution of Ethereum’s Layer 2 landscape. While current DeFi adoption figures are still modest, the platform’s technical progress and growing institutional interest lay a solid groundwork for future expansion. Buterin’s support not only enhances ZKsync’s credibility but also serves as a catalyst for wider adoption, especially in RWA and institutional DeFi sectors.

Nonetheless, challenges remain. ZKsync must persist in refining its protocols and attracting users to narrow the TVL gap with its rivals. The long-term success of its revamped tokenomics will also hinge on sustained demand for ZK and the effectiveness of its buyback initiatives.

Ultimately, ZKsync’s efforts to overhaul Ethereum’s liquidity structure could establish it as a key player in the DeFi arena. For now, the Atlas upgrade and Buterin’s endorsement make it a noteworthy project for investors to keep on their radar.