Why does Vitalik strongly support ZKsync? The institutional game behind the Layer 2 competition

Question

There’s been big news in the crypto world lately: Vitalik Buterin (V God) has publicly supported ZKsync’s Atlas upgrade. This isn’t just lip service—it’s a major signal for the entire Layer 2 sector.

Why is Vitalik’s stance so important?

Simply put, whatever tech solution Vitalik supports, the Ethereum ecosystem tends to follow. This time, his strong endorsement of ZKsync’s zero-knowledge proof approach means Ethereum is officially betting on the ZK-based scaling path.

What exactly did the Atlas upgrade improve?

Just look at a few numbers:

Transaction speed: jumped from single-digit TPS to 15,000 TPS, catching up with traditional centralized systems
Confirmation time: dropped from several seconds to about 1 second, making for an extremely smooth user experience
Liquidity sharing: Layer 1 and Layer 2 can now share liquidity directly, no more hassle with cross-chain transfers

In short, it’s fast, secure, and seamlessly integrates with Ethereum’s asset ecosystem. For institutions, this is exactly what they’ve been looking for—blockchain usability with central bank-level efficiency.

What do the token price and market reaction indicate?

After getting Vitalik’s endorsement, the ZK token shot up 50%. This isn’t retail hype—it’s institutional investors voting with their feet, showing confidence in the project’s long-term prospects.

Even more interesting, ZKsync has revamped its token model: shifting from pure governance to a value-capturing asset. With buyback and burn mechanisms, token holders can directly benefit from network growth. This is especially attractive to institutional investors from traditional finance.

How’s the real-world adoption?

By Q4 this year, ZKsync has already processed 1.2 billion transactions. This proves it’s not just hype—it’s actually being used. Financial institutions in particular value ZK’s privacy and Ethereum compatibility—it meets compliance needs while offering the openness of DeFi.

What’s next?

In December next year, the Fusaka upgrade is coming, aiming to double throughput to 30,000 TPS. By then, ZKsync’s position in Layer 2 will be even more solid.

But don’t get overly optimistic—Arbitrum and Optimism aren’t sitting on their hands, and competition is only getting fiercer. Whoever can attract institutional clients the fastest will win the final battle in the Layer 2 race.

Key takeaway: This isn’t just a technical upgrade—it marks Ethereum’s evolution into “institutional-grade infrastructure.” With Vitalik’s endorsement, it’s like the official starting gun, and institutions are set to enter the space at a faster pace.