ZkSync (ZK) is a layer 2 altcoin that has fallen over 90% from its peak, but is currently showing strong signs of recovery in both price and trading volume. This rebound has many analysts predicting further upside potential.
What’s driving ZK’s recent surge, and how far can it go? Let’s take a closer look at the key drivers of November’s 150% rally.
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The forces behind ZK’s 150% price increase
ZkSync is a layer 2 scaling solution for Ethereum that leverages zero-knowledge proofs (ZK proofs) to process transactions faster, cheaper, and more securely. This allows Ethereum to scale without sacrificing decentralization.
According to BeInCrypto data, ZK price rose from $0.03 to over $0.07 in the first week of November. This rally came despite the entire crypto market facing extreme fear and a sharp drop in altcoins after Bitcoin fell below $100,000.
According to CoinGecko data, ZK’s 24-hour trading volume exceeded $700 million, a significant increase from the previous month’s daily average of less than $20 million. The 30x increase in spot trading volume highlights the growing interest of traders in ZK.
Meanwhile, LunarCrush data reveals that ZkSync’s social mentions have reached their highest level in the past month, reflecting increased community attention. What exactly is causing this growing enthusiasm?
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Vitalik’s support ignites rallies
The turning point came in early November, when Ethereum co-founder Vitalik Buterin publicly praised ZkSync’s Atlas upgrade. This update significantly improves Ethereum transaction speed and cost efficiency, driving network adoption and revenue.
“ZKsync has done a lot of valuable work that is undervalued in the Ethereum ecosystem,” said Vitalik Buterin.
Analysts compared this support to Vitalik’s December 2022 announcement of support for the Solana (SOL) developer community. This was before SOL exploded from $8 to $290.
Founder’s Suggestion Adds More Fuel
While Vitalik’s praise fueled the rally, ZkSync founder Alex quickly added momentum with a bold proposal. He called for a complete transformation of the ZK governance token, turning it from a purely governance-based asset to a utility token with real economic value.
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The proposal would tie ZK to network revenue by using both on-chain fees (from cross-chain transactions) and off-chain fees (from enterprise licenses) to buy back and burn tokens, fund protocol development, and support ecosystem incentives.
Investors are betting big on this idea, believing it will improve ZK’s capabilities and drive strong, sustainable demand. ZK will not only be used for voting, but will be directly tied to a real revenue stream.
This mechanism could create an “economic flywheel.” Network revenue drives the buyback and burn of tokens, increasing their value for owners over time. According to Nansen, ZkSync currently ranks as one of the top chains with the fastest growing fee income over the past seven days.
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Stories about privacy bring new opportunities
Another factor driving ZK’s rise is the market’s growing interest in privacy-focused cryptocurrencies. Zcash (ZEC), a pioneer in zk-SNARK encryption, is gaining new attention in this space.
ZkSync recently announced ZkSync Prividium, a privacy-focused solution customized for enterprises. This gives investors even more reason to remain bullish as the privacy debate gains momentum.
Positive discussions add to the optimism. Some analysts predict that ZK could continue to rise by another 135% and reach $0.15 after a short-term correction.
“After such a sharp rally, we expect a healthy correction towards the $0.065 zone. If that level holds as support, the structure looks poised for another strong rally towards +135%,” said trader LaCryptoLycus.
However, ZK would need to rise another 250% to regain its all-time high of $0.27. The circulating supply of tokens is still only 34% of the total, with around 173 million ZK being unlocked every month.
The challenge now is whether the project can maintain this positive momentum despite widespread market concerns. Maintaining investor confidence over the coming months will be critical to sustaining ZK’s rise.
