ZKsync's Ecosystem Transition: Strategic Implications for Investors as Etherscan Support Ends and Lite Winds Down

The zero-knowledge (ZK) rollup landscape is undergoing a pivotal shift as ZKsync accelerates its transition from ZKsync Lite to ZKsync Era. With the planned decommissioning of ZKsync Lite by 2026 and the end of Etherscan support for its legacy infrastructure, investors must evaluate both the risks and opportunities inherent in this strategic pivot. This analysis examines the technical, operational, and competitive dimensions of ZKsync's migration, drawing on recent developments and expert insights to frame a forward-looking investment perspective.

Migration Risks: Liquidity, Technical Challenges, and User Adoption

ZKsync Lite, launched in 2020, served as a foundational proof of concept for ZK technologies but has since become a relic in the project's roadmap. While user funds remain secure and withdrawals to Ethereum mainnet are functional, the network now processes fewer than 200 transactions daily, with approximately $50 million in assets still bridged to the system. The transition to ZKsync Era-a fully EVM-compatible ZK rollup-requires a carefully orchestrated migration to avoid liquidity fragmentation or user disengagement.

A critical risk lies in the technical execution of the migration. ZKsync has emphasized that a detailed timeline and migration plan will be published in 2026, but delays or ambiguities in this process could erode trust. For instance, the lack of smart contract support on ZKsync Lite means users must manually transfer assets to Era, a process that could introduce friction if not streamlined. Additionally, the deprecation of Etherscan support for Lite complicates transparency for users accustomed to Ethereum's familiar tools, potentially deterring less technical participants.

Opportunities: EVM Compatibility, Enterprise Adoption, and Scalability

The migration to ZKsync Era unlocks significant opportunities. By supporting arbitrary smart contracts and full EVM compatibility, Era positions itself as a direct competitor to Ethereum's Layer-2 solutions like Arbitrum and Optimism. This is particularly relevant for developers seeking to deploy dApps with minimal code adjustments, a niche where Scroll's native EVM compatibility has already gained traction. ZKsync's Atlas upgrade, which boasts 15,000 TPS and 1-second finality, further strengthens its appeal for high-throughput use cases.

Enterprise adoption is another key growth vector. ZKsync has secured partnerships with institutions like Deutsche Bank and Sony, leveraging its privacy-focused infrastructure for compliance-driven settlements and media rights management. The ADI Chain, launched in Q3 2025 with backing from UAE institutions like First Abu Dhabi Bank and ADQ, underscores the platform's institutional-grade capabilities. These partnerships suggest a strategic pivot toward regulated markets, where ZKsync's scalability and security could outperform less mature competitors.

Competitive Positioning: ZKsync Era vs. StarkNet and Scroll

ZKsync's competitive edge hinges on its balance of EVM compatibility, performance, and enterprise partnerships. However, it faces stiff competition from StarkNet and Scroll. StarkNet's Stage 1 Rollup transition in 2025 and its S-two prover-a 100x efficiency boost over prior systems positions it as a leader in decentralization and long-term scalability. Meanwhile, Scroll's native EVM compatibility has attracted Ethereum developers seeking seamless migration, a challenge ZKsync must address to retain its developer ecosystem.

Despite these pressures, ZKsync's focus on enterprise solutions and its Fusaka L2 Upgrade in early 2026-aimed at enhancing cross-L2 interoperability-could differentiate it in the market. The ZK Token utility overhaul and expanded community activation programs also signal a commitment to grassroots adoption, which may offset StarkNet's TVL advantage (StarkNet's TVL stands at $232 million versus ZKsync's $34 million as of late 2025) according to analysis.

Strategic Implications for Investors

For investors, ZKsync's transition presents a dual narrative. On one hand, the risks of liquidity fragmentation and technical execution must be carefully monitored, particularly as the 2026 migration timeline approaches. On the other, the project's enterprise partnerships and EVM enhancements offer a compelling value proposition in a maturing ZK ecosystem. The success of ZKsync Era will depend on its ability to retain developers, execute its migration smoothly, and capitalize on institutional demand for scalable, compliant infrastructure.

In the broader context of the ZK race, ZKsync's strategic pivot reflects a broader industry trend: the shift from experimental proofs of concept to production-grade solutions. While competitors like StarkNet may lead in decentralization, ZKsync's focus on EVM compatibility and enterprise adoption positions it as a viable alternative for developers and institutions prioritizing interoperability and regulatory alignment.

As the 2026 deadline for ZKsync Lite's decommissioning looms, investors should closely watch the release of migration timelines, enterprise contract developments, and performance benchmarks against rivals. The coming year will determine whether ZKsync can solidify its place in the next phase of Ethereum's Layer-2 evolution.