Vitalik Buterin Backs ZKsync: Fueling Ethereum Layer 2 Leadership and Driving Altcoin Growth

As blockchain technology continues to advance at a rapid pace, Vitalik Buterin’s recent support for has drawn widespread interest, elevating the platform’s status as a key contender in the ongoing evolution of Ethereum’s Layer 2 scalability. This event, alongside Ethereum’s broader revival in 2025, highlights a pivotal moment for altcoin growth and the increasing participation of institutional players. By examining ZKsync’s technical progress, the expansion of Ethereum’s Layer 2 ecosystem, and the relationship between these developments, this discussion delves into how ZKsync’s progress may influence the future direction of the crypto market.

Buterin’s Support and ZKsync’s Technological Milestones

Vitalik Buterin’s endorsement of ZKsync’s Atlas upgrade marked a turning point for the project. The upgrade, delivering a throughput of 15,000 transactions per second (TPS) with ZK-based scalability, has been praised as a “major step toward efficient, ZK-powered scaling”

. This show of support has not only affirmed ZKsync’s technical strength but also boosted institutional trust in its robust infrastructure.

At the heart of ZKsync’s value proposition is the ZK Stack, an open-source framework that facilitates shared liquidity between Ethereum’s Layer 1 and Layer 2. This solution

in blockchain scalability and interoperability, all while upholding Ethereum’s security standards. The Atlas upgrade further improves the user experience by offering almost instant finality (around one second), for financial entities that value privacy and seamless integration.

The market has reacted positively: after Buterin’s endorsement, the token experienced a 50% increase, fueled by a deflationary approach involving buybacks and token burns . With the upcoming Fusaka upgrade aiming for 30,000 TPS, ZKsync is positioning itself to maintain a leading role in Ethereum’s Layer 2 sector .

Ethereum’s Layer 2 Ecosystem and the Altcoin Surge

Ethereum’s resurgence in 2025 has shifted market perspectives,

by mid-August 2025, surpassing and other alternative coins. This rally is supported by strong fundamentals, such as record-breaking on-chain activity and increased institutional investment, reinforcing Ethereum’s reputation as the “foundation of future financial systems” .

A major factor behind this growth is the widespread adoption of Layer 2 scaling technologies. In July 2025 alone, Ethereum’s Layer 2 platforms handled 46.67 million transactions,

now taking place on these networks. Solutions such as , Optimism, and Base have not only lowered transaction costs but also provided scalable, affordable infrastructure—essential for maintaining altcoin momentum during periods of high demand .

This robust infrastructure has also led to a drop in Bitcoin’s market dominance, which fell to 59% of the total crypto market capitalization in early August 2025

. Capital is increasingly flowing into and its associated platforms, marking the beginning of an Ethereum-driven altcoin rally. Institutional involvement, including ETF investments and corporate staking, further strengthens this movement .

ZKsync’s Market Penetration and Competitive Edge

Following Buterin’s support, ZKsync has shown tangible expansion within the Layer 2 landscape. By the third quarter of 2025, the platform accounted for a 15% share of the total value locked (TVL),

and 22% annual growth. Its cost-effectiveness—transactions costing as little as $0.01—and EVM compatibility have drawn developers and enterprises looking for scalable options that do not sacrifice Ethereum’s security .

Nevertheless, ZKsync faces intense rivalry. For example, Arbitrum leads with 45% of Layer 2 TVL and 1.37 million daily active wallets, while Optimism holds 25%

. Despite this, ZKsync’s emphasis on liquidity bridging through the ZK Stack and its planned upgrades, including Fusaka, position it to capture greater market share .

The platform’s future success will depend on the Fusaka upgrade’s ability to achieve 30,000 TPS. If this target is met, it could attract more institutional investment and further establish ZKsync’s significance in Ethereum’s scaling story

.

Investment Considerations and Outlook

The intersection of Buterin’s endorsement, the expansion of Ethereum’s Layer 2 solutions, and ZKsync’s technical innovations creates a strong case for investment. As Ethereum continues to outperform Bitcoin and fuel altcoin growth, ZKsync’s contribution to scalable, secure infrastructure puts it in a favorable position to benefit from these trends.

Investors should keep an eye on the following indicators:
1. ZK token trends and the long-term viability of its deflationary mechanism

.
2. Adoption levels of the ZK Stack and the impact of the Fusaka upgrade on transaction throughput .
3. Ethereum’s overall market influence and its capacity to maintain capital inflows into alternative coins .

Although competition from platforms like Arbitrum remains a challenge, ZKsync’s planned enhancements and institutional support point to a promising path ahead. As the crypto sector moves into a new era of development, ZKsync’s alignment with Ethereum’s Layer 2 ambitions may become a key driver in the next wave of altcoin growth.