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Behavior of Early Whales on zkSync Platform Revealed

Explore the investment patterns of early adopters on zkSync and their impact on Ethereum and USDC holdings.
Published on 2023-04-28

Early Adoption of zkSync

zkSync, a Layer 2 scaling solution for Ethereum, is gaining traction among early adopters. These users have an average of 32% of their holdings on the platform. Ethereum (ETH) and stablecoin USDC dominate these holdings, showing a significant amount of idle capital.

Concentration of Activity

A noteworthy trend is the concentration of activity around decentralized exchanges (DEX), particularly from liquidity providers (LPs). Key platforms include SyncSwap, Izumi Finance, Mute, and Velocorexyz, with most LPs engaging in ETH/USDC pools. This focus indicates a reduced interest in alternative coins (alts) within the zkSync ecosystem.

Idle Capital and Future Opportunities

The substantial idle holdings in ETH and USDC suggest potential opportunities for future investment. The report advises monitoring new product launches, such as derivatives applications like UniDex Finance and Derivio, which are currently in the testnet phase. These developments could offer lucrative opportunities for investors.

Exercising Caution

Despite promising prospects, the report urges caution when engaging with zkSync protocols. The presence of past fraudulent activities, or "rug pulls," serves as a warning to the crypto community to thoroughly evaluate any interactions with protocols on the platform.

By understanding these patterns and exercising caution, investors can navigate zkSync more effectively, potentially capitalizing on emerging opportunities while mitigating risks.

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