Today crypto analyst Messari released a report concerning the status of ZKsync protocol in Quarter 4 of 2024.

The report shared an in-depth analysis into Zksync's operational activities during the fourth quarter, highlighting its revenue growth and platform's adoption.

Crypto analyst Messari has released a report highlighting the status of Zksync protocol in Quarter 4 of 2024. The report provides an in-depth analysis into Zksync’s operational activities during the fourth quarter, highlighting its revenue growth and platform’s adoption.

According to the report, the release of Zksync’s native token (ZK) in June 2024 contributed a massive growth for the protocol’s market cap. As a result, the platform’s market capitalization closed Quarter 4, December 24 at $676 million, marking a 35% growth from Quarter 3, September 24. Also, the token price rose by 35% from a low of $0.14 in Quarter 3, September 23, to a high of $0.18 by the end of Quarter 4, December 24.

Moving down, the platform earned $567,000 in transaction fees in quarter 4, though a decrease by 4% compared to fees generated in quarter 3. The introduction of EIP-4844 at the end of quarter 1 helped decrease transaction costs on the Layer-2 scaling network by 100x. However, this innovation has led to a massive drop in fees paid on the protocol.

The protocol experienced a decline of active addresses. Data shows that average daily active addresses dropped by 63% QoQ from 110,900 in quarter 3 to 41,400 in quarter 4. This decrease was mainly caused by the absence of incentives to motivate users to continue using the network after June’s airdrop program. However, average daily new addresses only declined by 2% QoQ from 12,400 to 12,100 during the period. This shows that the protocol is still drawing in new addresses to engage with the network.

Lastly, Zksync recorded a 9% growth on its DeFi TVL, rising from $88.8 million on September 23 to $97.1 million on December 24. This places it as the 28th protocol in terms of TVL.

Zksync price updates

Zksync (ZK) has witnessed a mild drop of 1.7% over the last 24 hours after weeks of impressive gains. This abrupt slump occurred due to the contraction of liquidity in the market and a shift toward bearish sentiment.

ZK had been on a bullish movement for multiple weeks, registering 17.8% and 17.4% surges over the past seven days and two weeks ago respectively. However, the uptrend movement seems to have stopped suddenly. The recent fall in value aligns with a liquidity decrease in the market, highlighting a decline in investors’ confidence.

At press time, the token’s transaction volume has decreased by 28.28% over the past 24 hours to currently stand at $41.48 million. This represents a loss of $16.36 million of assets being pulled off from the market. If such outflows persist, the price drop could intensify.

Also, major indicators from the derivative market shows a rising bearish sentiment around the asset. Open interest (OI) on Zksync has dropped by 2.54% over the past 24 hours. This signifies that many traders are closing their contracts, suggesting a change towards bearish sentiment. All these indicators point out that the ZK is in a bearish phase – appears that the corrective phase is not ready to subside.