Vitalik Buterin Backs ZKsync: Strategic Impact on Ethereum Layer-2 Landscape and Future Value

Vitalik Buterin’s recent praise for ZKsync’s Atlas upgrade has made a significant impact on the ecosystem, marking a major evolution in the network’s scaling strategies and its appeal to institutional players. By commending the project’s “underrated and valuable work,” Buterin has both recognized ZKsync’s technical progress and highlighted the increasing relevance of zero-knowledge (ZK) rollups in Ethereum’s future plans. This article examines the broader strategic effects of this endorsement on layer-2 scaling solutions and Ethereum’s overall value, referencing recent milestones, comparative strengths, and institutional momentum.

ZKsync's Atlas Upgrade: Driving Scalability and Liquidity

Launched in 2025, the Atlas upgrade represents a major advancement for ZKsync. With the ability to process more than 15,000 transactions per second (TPS) and deliver nearly instant finality, this upgrade

. This is accomplished by enabling seamless liquidity sharing between Layer 1 and Layer 2, which removes fragmented liquidity pools and for stablecoin transfers. The outcome is a more streamlined network capable of supporting high-frequency trading, institutional-level DeFi, and real-world asset (RWA) integrations.

Buterin’s support has boosted ZKsync’s profile,

following the announcement. This surge indicates rising institutional trust in ZKsync’s infrastructure, especially as the team to raise throughput to 30,000 TPS. These developments establish as a pivotal force in Ethereum’s move toward a modular, rollup-focused design.

Comparative Advantages: ZKsync vs.

Optimism

and Arbitrum

Although ZKsync, Optimism, and

all address Ethereum’s scaling demands, their unique strengths set them apart. ZKsync’s zk-rollups and zero-knowledge proofs (ZKPs) deliver quicker finality and lower transaction fees—often under $0.01 per transaction—compared to . Furthermore, ZKsync’s compatibility with the EVM allows developers to launch Ethereum-based apps without modifying code, .

In contrast, Arbitrum and Optimism utilize optimistic rollups, which presume transaction validity unless disputed. While this approach enables high throughput—

by early 2025—it creates a balance between speed and security. ZKsync’s ZKP-driven model , making it especially suitable for privacy-centric and rapid-use scenarios.

Institutional Adoption and Ethereum's Roadmap

Buterin’s backing has accelerated the institutional embrace of ZK-based scaling.

in inflows from ETFs in 2025, while ZKsync’s deflationary token model—with buybacks and staking incentives—has to large investors. By the fourth quarter of 2025, ZKsync had handled 1.2 billion transactions, for enterprise solutions.

Ethereum’s future vision is closely tied to ZK-based scaling. The network’s evolution toward a modular structure—where rollups manage execution and Ethereum focuses on data availability and consensus—has become a reality

. Upgrades such as EIP-4844 (which lowers data posting expenses) and future features like Danksharding and PeerDAS will continue to improve ZK-rollup performance . , which utilizes ZKsync for a compliant Layer 2 solution, illustrates how financial institutions are leveraging ZK technology to satisfy regulatory requirements while preserving Ethereum’s security.

Strategic Implications for Ethereum's Value

ZK-based scaling is more than a technical enhancement—it is essential for Ethereum’s sustained value. By supporting thousands of rollups and specialized Layer 3s, Ethereum is transforming into a “data availability layer” that underpins a wide array of modular systems

. This transition reduces dependence on single-layer architectures, lowers gas expenses, and opens the door to applications beyond DeFi, such as AI processing and RWA tokenization .

Additionally, ZKsync’s achievements underscore the necessity of ongoing innovation for Ethereum to maintain its lead. While Optimism and Arbitrum currently hold the largest TVL, ZKsync’s emphasis on privacy, speed, and robust infrastructure for institutions positions it as a major contender in Ethereum’s next chapter.

, ZK-based technologies are increasingly favored by enterprises aiming to combine scalability with regulatory adherence.

Conclusion: A New Era for Ethereum

Vitalik Buterin’s support for ZKsync is more than just approval—it marks a clear direction for Ethereum’s future. The Atlas upgrade has proven the effectiveness of ZK-rollups in solving scalability and liquidity issues, and Buterin’s influence has hastened institutional involvement. As Ethereum’s roadmap progresses, ZK-based scaling will be central to keeping the network competitive in the fast-changing blockchain world. For investors, the intersection of technical progress, institutional interest, and regulatory compatibility makes ZKsync a standout example of the future of decentralized infrastructure.