Vitalik Buterin's Endorsement of ZKsync: A Catalyst for Ethereum Scalability and Institutional Adoption

In a pivotal moment for Ethereum's scaling ambitions, co-founder Vitalik Buterin has publicly endorsed ZKsync's Atlas upgrade, calling the project's work "underrated and valuable" and emphasizing its transformative impact on Ethereum's liquidity structure, as reported by Cryptofront News. This endorsement, coupled with ZKsync's technical advancements and institutional partnerships, signals a potential inflection point for Layer 2 adoption and institutional crypto allocations.

Technical Breakthroughs and Ethereum's Liquidity Revolution

The Atlas upgrade, launched in October 2025, introduces over 15,000 transactions per second (TPS), one-second finality, and near-zero fees, according to Coinfomania. More critically, it redefines the relationship between Ethereum's Layer 1 (L1) and Layer 2 (L2) chains by enabling L2s to access Ethereum's liquidity in real time, eliminating the need for separate liquidity pools, as noted in Cryptopolitan. This innovation positions Ethereum as a centralized capital hub, allowing ZKsync-based chains to leverage its deep liquidity for faster, more efficient transactions-particularly for institutional and real-world asset (RWA) applications, as highlighted in Coinotag.

Buterin's advocacy extends to addressing Ethereum's scalability bottlenecks. He has proposed replacing the modexp precompile, a legacy feature that makes ZK-EVM proofs 50 times more resource-intensive, as noted in Coinotag. While this change could increase gas costs by 15–25%, it would streamline ZK-rollups, aligning with his vision of scalable, incorruptible blockchains, as noted in Bitget.

Market Reactions and Institutional Momentum

ZKsync's native token, ZK, surged 50% following Buterin's endorsement, with daily trading volume spiking 81% to $307 million, according to CoinEdition. By Q4 2025, the platform had processed 1.2 billion transactions, reflecting robust real-world adoption, as reported in FinanceFeeds. Institutional interest has also accelerated, with over 30 traditional financial institutions-including Citi, Deutsche Bank, and Mastercard-joining ZKsync's ecosystem, as noted in Futunn.

The project's Prividium infrastructure, a private Layer 2 solution for institutional-grade privacy, supports 15,000 TPS with 1-second latency, enabling instant cross-border settlements, as reported in IcoBench. Meanwhile, ZKsync's tokenomics redesign-featuring buybacks, burns, and staking rewards-has shifted the ZK token from a governance tool to a value-capturing asset, as noted in Coinotag.

Future Catalysts and dApp Ecosystem Growth

Looking ahead, the December 2025 Fusaka upgrade is expected to push ZKsync's throughput to 30,000 TPS, further solidifying its competitive edge, as noted in Bitget. This upgrade, combined with Buterin's endorsement, has spurred dApp growth, with ZKsync's network processing over 700 million transactions, as reported in Blockworks. While daily active addresses remain modest at 10,400, the platform's TVL across 18 chains reached $3.3 billion, underscoring its role as a B2B infrastructure provider, as noted in Futunn.

Institutional adoption is also gaining traction. Bitmine's $250 million Ethereum-focused treasury strategy, backed by Founders Fund and Pantera Capital, reflects broader institutional demand for ETH as a reserve asset, as reported in CryptoRank. With Ethereum holdings surpassing 22 million ETH by June 2025, the network's appeal as a store of value is strengthening, as noted in CryptoRank.

Conclusion: A New Era for Ethereum and Layer 2

Vitalik Buterin's endorsement of ZKsync underscores the project's critical role in Ethereum's scalability roadmap. By redefining liquidity dynamics and attracting institutional capital, ZKsync is poised to accelerate the adoption of decentralized applications and RWA integrations. As the Fusaka upgrade and tokenomics reforms take effect, investors and institutions alike may find themselves increasingly aligned with ZKsync's vision for a scalable, interoperable blockchain future.