Vitalik Buterin's Endorsement of ZKsync and the Reshaping of Ethereum's Value Proposition

In November 2025, Vitalik Buterin's public endorsement of ZKsync's Atlas upgrade marked a pivotal moment for Ethereum's Layer-2 ecosystem. By calling the project's work "underrated and valuable," Buterin underscored ZKsync's role in addressing Ethereum's scalability challenges while aligning with the network's long-term vision of leveraging zero-knowledge (ZK) proofs for secure, high-throughput transactions according to reports. This endorsement, coupled with ZKsync's technical advancements and surging institutional adoption, signals a paradigm shift in how Ethereum's value proposition is being redefined through ZK-based infrastructure.

ZKsync's Atlas Upgrade: A Technical and Institutional Catalyst

ZKsync's Atlas upgrade, launched in late 2025, has positioned the platform as a cornerstone of Ethereum's Layer-2 scalability strategy. The upgrade enables ZKsync to process over 15,000 transactions per second with one-second finality and near-zero fees, a leap forward in efficiency compared to earlier Layer-2 solutions. By integrating a ZK Stack that allows seamless liquidity sharing between Ethereum's Layer 1 and Layer 2, the upgrade eliminates the need for redundant liquidity pools on Layer 2, accelerating capital movement for institutional and real-world asset (RWA) applications.

This technical breakthrough has attracted significant institutional interest. For instance, Deutsche Bank and Citi have reportedly adopted ZKsync for cross-chain settlements and private transactions, leveraging its ZK-secured privacy features according to reports. Meanwhile, ZKsync's deflationary model-restructuring the ZK token from a governance asset to a value-accruing one through buybacks and burns-has driven a 50% price surge post-endorsement, reflecting growing institutional confidence.

Institutional Adoption and Ethereum's Strategic Shift

Ethereum's broader strategy, often termed "Lean Ethereum," prioritizes ZK rollups as the primary avenue for scaling. Buterin's advocacy for ZKsync aligns with this vision, emphasizing cost efficiency and security through cryptographic proofs. The results are already materializing: ZKsync processed 1.2 billion transactions by Q4 2025, with a total value locked (TVL) of $3.5 billion, driven by enterprises seeking scalable, privacy-preserving solutions.

Notably, partnerships with global institutions like Sony and Deutsche Bank highlight ZKsync's appeal for enterprise-grade use cases, from supply chain management to cross-border payments according to reports. These collaborations underscore how ZK technology is not only solving Ethereum's scalability bottleneck but also enabling new revenue streams for institutions through frictionless, secure transactions.

Future Outlook: Fusaka Upgrade and Market Projections

Looking ahead, ZKsync's upcoming Fusaka upgrade, expected to boost transaction throughput to 30,000 TPS, further cements its competitive edge in the Layer-2 landscape. Analysts project the ZK Layer-2 market to grow at a compound annual growth rate (CAGR) of 60.7%, reaching $90 billion by 2031, driven by Ethereum's strategic focus on ZK rollups and institutional demand.

For investors, these developments suggest that ZKsync is not merely a Layer-2 solution but a foundational component of Ethereum's next phase. By reducing reliance on gas-intensive Layer 1 for high-volume applications, ZKsync enhances Ethereum's utility as a global settlement layer while attracting capital from traditional finance.

Conclusion: A New Era for Ethereum's Value Proposition

Vitalik Buterin's endorsement of ZKsync reflects a broader consensus that ZK technology is the linchpin of Ethereum's evolution. As institutional adoption accelerates and ZK-based solutions like Atlas and Fusaka mature, Ethereum's value proposition is shifting from a decentralized ledger to a scalable, enterprise-ready infrastructure. For investors, this transition represents a high-conviction opportunity to capitalize on the convergence of blockchain innovation and institutional-grade utility.