- Zk-rollups, layer-2 scalability solutions for Ethereum have gained popularity with the highly anticipated token launch of zkSync.
- As the zero-knowledge narrative heats up, experts eye Aleph Zero’s AZERO token, Syscoin’s SYS and Mina Protocol’s MINA for 2023 gains.
- AZERO, SYS and MINA yielded upwards of 15% over the past week for holders, as the Zk-narrative gains popularity.
The zero-knowledge (Zk) Ethereum scalability narrative gained popularity with the upcoming launch of Polygon’s zero-knowledge Ethereum Virtual Machine (zk-EVM). Polygon’s scaling solution for the Ethereum Virtual Machine boasts increased productivity and lower transaction fees by verifying transactions in batches on the Etherium mainnet.
Several other zk-rollup protocol’s tokens have yielded double-digit gains for holders over the past week.
Also read: Paxos to halt Binance USD issuance after SEC lawsuit
Zk-rollups narrative heats up, AZERO, SYS and MINA witness price rally
Zero-knowledge rollups are layer-2 scaling solutions that increase throughput on the Ethereum mainnet by moving computation and storage off-chain. This has fueled the popularity of these rollups and thousands of transactions can be processed in a single batch, boosting the scalability of the underlying blockchain.
Following the popular Artificial Intelligence (AI) narrative and DeFi layer-2 protocol tokens, zk-rollups have garnered the attention of analysts and traders on crypto Twitter. Aleph Zero’s AZERO, Syscoin’s SYS and Mina Protocol’s MINA token have yielded upwards of 15% gains for holders since February 6.
Why does Ethereum need Zk-rollups?
Ethereum has inherent scalability problems due to its design. And although there is a roadmap to eventually solve these issues, this process will take a long time. Rollups help alleviate congestion by 'rolling up' transactions into batches that are executed off-chain.
Zk-rollups store all addresses and respective balances in a merkle tree, a data structure used for verification and synchronization of data. The root of this “balance tree” is stored in an on-chain smart contract.
Architecture of Zk-rollups
They have 3 main tasks: Handling deposits, transfers, and withdrawals. The image above represents a (simplified) ZK-architecture.
Zk-rollup tokens to watch out in 2023
Aleph Zero is a layer-1 privacy-enhancing blockchain that ensures scalability, low transaction fees and relatively high security for developers. The protocol recently announced a series of developer focused events as it hosts a new high utility NFT marketplace.
AZERO price is up nearly 10% since February 12, since the launch of ArtZero, the NFT marketplace on the Aleph Zero blockchain.
AZERO price chart
Syscoin (SYS) is a permissionless blockchain-based cryptocurrency that is built on the Bitcoin scripting system and its tokenomics are based on Ethereum’s EIP-1559 proposal, without a capped maximum supply.
SYS has yielded 17.3% gains for holders over the past week. Developers behind the protocol announced that SYS will be the native token of the upcoming optimistic Layer-2 project. This boosts the utility of the token and acts as an incentive to holders in the market.
SYS price chart
A zk-rollup that is also the world’s lightest blockchain, Mina Protocol, recently witnessed bullish developments. The protocol recently announced a funding opportunity for developer proposals in the zkIgnite innovation program.
⚡️ All are welcome in zkIgnite, Cohort 1 — Here’s how you can participate:
— Mina Protocol (@MinaProtocol) February 7, 2023
∙ Build a zkApp business or tooling
∙ Give feedback on proposals
∙ Become an elector
∙ Mentor builders
∙ Refer a friend
Sign up here: https://t.co/WdNKDsR61s and keep reading to learn more
On February 15, the zk-rollup invited the first cohort of developers to build on Mina Protocol. As the developer ecosystem on Mina Protocol flourishes, it is expected to boost the utility of MINA among other zk-rollup projects.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?