The second season of ZKsync Ignite will not proceed as planned, and the program will be completely discontinued on March 17, 2025. As a result, the reward distributions expected in the sixth and final phase of the program’s first season have also been canceled.

Focus Shifts to Elastic Network Vision

The team highlighted that their long-term goal is now centered around the Elastic Network. This new architecture aims to build an ecosystem of interconnected chains based on Zero Knowledge (ZK) technology. In the statement, they noted, “Focusing our resources on Elastic Network development better aligns with our interoperability vision.”

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ZK Token Faces Major Price Drop

The ZK token had surged to $0.26 in December 2024. However, following the market downturn, the token’s value has decreased by 76%, currently trading at $0.06.

TVL Falls from $270 Million to $139 Million

The Ignite program had initially boosted DeFi Total Value Locked (TVL) to $270 million. However, according to the latest data from DefiLlama, ZKsync’s TVL has dropped to $139 million.

Ignite originally aimed to distribute 300 million ZK tokens over nine months. In its first season, 100 million ZK tokens were allocated to liquidity providers. At launch, these tokens were valued at $21 million, but at current prices, they are worth just $6.8 million.

Beyond ZKsync, the broader crypto market continues to experience a downturn. Bitcoin (BTC) is trading at $83,230, and Ethereum (ETH) at $1,900.

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