Vitalik Buterin Backs ZKsync: Is This the Next Era for Layer 2 Expansion?

In the rapidly changing world of blockchain, few endorsements are as influential as Vitalik Buterin’s. The co-founder’s recent show of support for ZKsync’s Atlas upgrade has sparked intense speculation, casting this Layer 2 project as a possible cornerstone in Ethereum’s pursuit of scalable and secure infrastructure. Buterin called the upgrade “a major step toward effortless, ZK-powered scaling,” a remark that has not only boosted ZKsync’s reputation but also shifted the investment outlook in an already crowded field .

Technical Advancements: The Atlas and Fusaka Upgrades

ZKsync’s development roadmap has consistently drawn attention from both developers and investors. The Atlas upgrade, which debuted in 2025, brought a 15,000 TPS capacity and a

Stack that allows for smooth liquidity movement between Ethereum’s Layer 1 and Layer 2. This advancement , a crucial improvement for applications that need instant finality. The upcoming Fusaka upgrade, , is expected to double throughput to 30,000 TPS, further strengthening ZKsync’s standing among its competitors.

Recent data shows that

had already handled 1.2 billion transactions by the fourth quarter of 2025, in both enterprise and DeFi sectors. In comparison, and , though leaders in TVL and transaction count, have yet to match ZKsync’s emphasis on zero-knowledge proofs and privacy features tailored for institutions .

Tokenomics and Market Volatility: A Double-Edged Sword

The ZK token experienced a dramatic surge after Buterin’s endorsement. In Q4 2025, its price jumped 65% in a week, fueled by his support and proposed changes to tokenomics,

. However, this rally was followed by a planned token unlock on November 17, which released 173 million ZK tokens (3.37% of the total supply), .

Bitget analysts point out that ZKsync’s “ZKnomics” approach aims to link token value with network activity,

that could help stabilize demand over time. Still, with a TVL of only $44.5 million and about 10,000 daily users, ZKsync trails behind rivals like , which boasts a 7-day trading volume of $2.98 billion .

Institutional Adoption: From Banks to Enterprise

Interest from institutional players in ZKsync has soared since Buterin’s endorsement.

, including Deutsche Bank and Citi, are piloting ZKsync’s Prividium framework for confidential transactions—a vital feature for industries with strict compliance needs. The platform’s compatibility with Ethereum and its ZK-based privacy align well with regulatory requirements, for enterprises concerned about Solana’s less transparent design.

By late 2025, ZKsync had formed partnerships with financial institutions looking for scalable, cost-effective solutions for cross-border payments and asset tokenization

. This momentum among institutions sets ZKsync apart from Optimism’s community-led expansion and Arbitrum’s dominance, rather than enterprise deals.

Competitive Landscape: ZKsync vs. Arbitrum and Optimism

Despite ZKsync’s impressive technical progress, its investment prospects must be weighed against its main competitors. Arbitrum, with $12 billion in TVL and 1.5 million daily transactions,

, supported by its Nitro upgrade and a strong developer base. Optimism, on the other hand, has seen steady growth, with $6 billion in TVL and a focus on retroactive public goods funding .

ZKsync’s edge comes from its ZK Stack and traction with institutions. The Fusaka upgrade’s promise to boost throughput to 30,000 TPS could help it close the gap with Arbitrum, but there are still execution risks. As one analyst put it, “ZKsync’s future depends on turning its technical strengths into widespread adoption—something Arbitrum has already achieved at scale

.”

Analyst Outlook: Price Predictions and Scenarios

Bitget’s research team has outlined three possible paths for ZK’s price in 2025. In a bullish scenario, where Ethereum Layer 2 solutions see rapid adoption and ZKsync lands major partnerships, the token could climb to $0.40–$0.60. A moderate outcome would see prices between $0.20–$0.35, while a bearish scenario could push it down to $0.10–$0.15 if market sentiment worsens or ZKsync fails to stand out

.

These forecasts highlight the token’s volatility but also its potential for significant gains or losses. The main factors—Fusaka’s rollout, institutional uptake, and broader Ethereum upgrades—will ultimately decide if ZKsync becomes a key player in Layer 2 scaling or fades from prominence.

Conclusion: A Calculated Bet on ZK's Future

Vitalik Buterin’s backing has undoubtedly raised ZKsync’s profile, but the investment case is still complex. While the platform’s technical progress and institutional interest are promising, its relatively small TVL and stiff competition from established players like Arbitrum and Optimism remain significant challenges. For investors, the crucial question is whether ZKsync can turn Buterin’s endorsement into lasting adoption and ecosystem growth.

With the Fusaka upgrade approaching and Ethereum’s scaling efforts advancing, ZKsync faces a pivotal moment. If it can fulfill its promises, it could become a leading Layer 2 solution. Yet, in the unpredictable world of blockchain, even the most promising projects are not guaranteed success.