Ethereum News Today: Buterin's Endorsement Ignites ZK Token Surge, Transforms Ethereum into Liquidity Powerhouse

ZK token surged over 50% on November 1, 2025, climbing from $0.03 to $0.045, following a high-profile endorsement from Ethereum co-founder Vitalik Buterin, according to Cryptobriefing. The price jump coincided with the launch of ZKsync's Atlas upgrade, a major infrastructure enhancement designed to boost Ethereum's scalability and liquidity. Buterin praised the project for doing "a lot of underrated and valuable work" in the Ethereum ecosystem, according to a TradingView report, signaling growing institutional and developer confidence in the platform.

The Atlas upgrade, introduced by ZKsync's parent company Matter Labs, introduces a new high-performance sequencer capable of processing up to 30,000 transactions per second (TPS) while maintaining full Ethereum compatibility, as reported by Cryptobriefing. The update also includes Airbender, a system that enables rapid confirmations and cross-chain settlements. These improvements position Ethereum as a "true liquidity powerhouse," according to a Phemex article, where ZKsync's Layer-2 chains can seamlessly plug into the same capital pool as the mainnet, eliminating fragmented liquidity pools that previously hindered cross-chain transactions.

The upgrade's real-time liquidity features are particularly transformative for institutional and real-world asset (RWA) flows. Prior to Atlas, Layer-2 networks like ZKsync Era or Arbitrum required separate liquidity pools, slowing transactions and limiting interoperability, according to CryptoFront News. With the new framework, ZKsync-based chains can access Ethereum's liquidity within seconds, enabling faster capital movement and reducing reliance on intermediaries. Buterin emphasized that this shift could redefine Ethereum's role from a "passive settlement network" to an "active capital hub," where tokens and markets anchored to the mainnet become instantly available to ZKsync's ecosystem.

Matter Labs also announced plans to decentralize ZKsync through the introduction of a governance token, ZK, to be distributed via an airdrop to long-term users of ZKsync Era and ZKsync Lite. Approximately 33% of the token supply will be allocated to the company's team and investors. The move aligns with broader trends in decentralized governance and could further incentivize participation in the network.

The ZK token's price surge reflects both the technical merits of the upgrade and Buterin's influential validation. His tweet describing Ethereum as "incorruptible" underscored the project's alignment with Ethereum's core principles, while highlighting ZKsync's role in enhancing the blockchain's scalability. Analysts note that the upgrade's focus on enterprise-grade performance—such as 15,000 TPS and near-zero fees—positions ZKsync as a viable solution for institutional clients and real-time financial applications.