Early Whales Have 32% of Their Holdings on zkSync: Nansen Analysis

• Early adopters of zkSync have a median of 32% of their holdings on the platform.
• Ethereum and stablecoin USDC are probably the most broadly held.
• The report highlights the focus of LP exercise on DEX, calling for warning.

A report from the info analytic agency Nansen Analysis has captured the conduct of early whales on zkSync, a Layer 2 scaling answer for Ethereum that makes use of zero-knowledge proofs to attain excessive throughput and low charges.

In line with the report, these early adopters have a median of 32% of their holdings on zkSync, indicating a major quantity of idle capital on the platform. The holdings primarily comprise spot Ethereum token (ETH), stablecoin USDC, and a distant third of MUTE, a brand new privacy-focused cryptocurrency.

The report additional highlights that the majority of their exercise on zkSync is concentrated round decentralized exchanges (DEX), particularly liquidity suppliers (LPs) throughout SyncSwap, Izumi Finance, Mute, and Velocorexyz. Moreover, it notes that the majority LPs are within the ETH/USDC swimming pools. On the similar time, Pool 2s and altcoins (alts) make up a really negligible place, “indicating an absence of curiosity in zkSync alts.”

The information analytic agency additional careworn the presence of a substantial idle capital ready to be deployed, given the massive variety of spot holdings in ETH and USDC. It advises preserving monitor of recent product launches, comparable to upcoming derivatives apps like UniDex Finance and Derivio, that are at present in testnet.

Whereas the report notes the potential for worthwhile funding alternatives within the close to time period, it additionally warns customers to train warning when interacting with protocols on zkSync. “There have been many rug pulls on zkSync,” the analytic famous, advising the crypto neighborhood to “all the time train warning earlier than interacting with any protocols.”