On June 17, the Layer 2 network ZKsync launched its native token, ZK, which initially boasted a market capitalisation exceeding $1 billion. However, key metrics of the project soon began to decline.
The token showed positive momentum during the first few hours of trading. Yet, a downturn ensued, likely due to sustained pressure from airdrop recipients and unfavourable market conditions overall.
At the time of writing, ZK’s market capitalisation stands at approximately $600 million, with a fully diluted valuation of $3.5 billion, according to CoinGecko. These figures represent a 40% drop from initial values.
A week before the token launch, the ZKsync Era network experienced a relatively calm period in terms of new unique addresses on-chain, averaging around 7,000 daily. On the day trading commenced, this number surged to 18,000.
A day later, unique users increased further to 35,800.
However, this spike in activity was short-lived. By June 19, network activity had decreased by 37%, and the following day saw a further 32% decline.
During the ZK launch, a record number of active addresses was recorded on the network—nearly 675,000. Three days later, this figure had halved.
The token itself has also experienced declines. Over the past week, ZK has fallen by 18% to $0.16.
Earlier, the ZKsync airdrop faced community criticism, as only 13% of the 6 million unique wallets were eligible, many of which turned out to be “sybils.”