Vitalik Buterin Backs ZKsync: What This Means for the Evolution of Layer 2 Scaling

The Layer 2 (L2) scaling sector in 2025 is a hotbed of technological advancement, with platforms such as , , and fiercely competing for leadership. In this intense race, ZKsync has distinguished itself, propelled by targeted upgrades, growing institutional interest, and a significant endorsement from Ethereum co-founder Vitalik Buterin. This article explores the investment prospects arising from ZKsync’s swift rise, examining its standing within the crowded L2 arena and its potential to redefine Ethereum’s scalability story.

ZKsync’s Strategic Progress: Atlas and Fusaka Enhancements

ZKsync’s momentum in 2025 is largely attributed to its Atlas upgrade, which delivered a throughput of 15,000 TPS and introduced the ZK Stack, an open-source suite that facilitates effortless liquidity movement between Ethereum’s Layer 1 and Layer 2.

, Vitalik Buterin gave public support to this upgrade, emphasizing its importance in advancing Ethereum’s adoption among institutions through “ZK-secured scalability.” This backing has strengthened ZKsync’s reputation, especially with organizations seeking privacy-centric and Ethereum-compatible solutions.

The Atlas upgrade also triggered a

, reflecting rising institutional trust in its technology. By the end of 2025, ZKsync had handled 1.2 billion transactions, highlighting its real-world utility and adoption . Looking forward, the Fusaka upgrade, , is anticipated to further enhance ZKsync’s position against competitors like Arbitrum and Optimism.

Market Share and Competitive Landscape

Although ZKsync has made significant strides, Arbitrum and Optimism continue to lead the L2 market. As of the third quarter of 2025, Arbitrum One commands 51% of the Total Value Locked (TVL) with $16.63 billion, while Optimism and Base hold $6 billion and $10 billion, respectively

. ZKsync, on the other hand, accounts for 15% of the L2 TVL, trailing Arbitrum (45%) and Optimism (25%) but showing rapid expansion .

ZKsync sets itself apart with its affordable zk-rollups (costing just $0.01 per transaction), EVM compatibility, and emphasis on privacy, making it attractive to developers and businesses that value scalability without sacrificing Ethereum’s security

. Nonetheless, its smaller TVL and Arbitrum’s dominance with 1.37 million daily active wallets highlight the hurdles ZKsync faces in gaining wider adoption among both retail and institutional users .

Investment Perspective: Prospects and Challenges

ZKsync’s strategic advancements create notable opportunities for investors. The Atlas and Fusaka upgrades position it to benefit from Ethereum’s evolution toward greater scalability and enterprise readiness. The endorsement from Buterin, along with the

token’s deflationary structure and price rally, points to robust institutional support. Additionally, the ZK Stack’s capacity to connect Layer 1 and Layer 2 liquidity could pave the way for new applications in DeFi and enterprise blockchain.

However, there are still risks. The L2 sector is fiercely contested, with Arbitrum and Optimism leveraging their early lead and larger developer communities. Moreover, Ethereum’s economic framework is under scrutiny as L2 solutions divert value and transaction fees from the mainnet, which could influence Ethereum’s long-term price outlook

. For ZKsync, the success of the Fusaka upgrade in reaching 30,000 TPS will be pivotal for sustaining its growth and attracting more institutional capital.

Conclusion: A Promising Contender in a Rapidly Changing Environment

ZKsync’s targeted upgrades, support from Buterin, and growing institutional engagement establish it as a significant force in Ethereum’s scaling journey. While it faces tough competition from established L2 players, its commitment to privacy, cost savings, and interoperability makes it a strong candidate. For investors, ZKsync offers a high-upside opportunity in Ethereum’s future, provided it can maintain its pace of innovation and adapt to the shifting L2 landscape.