- ZKsync canceled the second season of Ignite due to market conditions, shifting toward a more conservative spending approach in the short term.
- ZKsync is focusing on Elastic Network to enhance interoperability and efficiency after discontinuing Ignite’s incentive-driven growth strategy.
ZKsync recently shocked the crypto industry with an unexpected announcement: the second season of the Ignite incentive program has been officially canceled. This decision was taken under still-slow market conditions, which made ZKsync more cautious in budget management.
This news is absolutely sad for people who have been looking forward to the continuance of this program. This phase also suggests, though, that ZKsync is developing a more mature long-term plan.
ZKsync Ignite Program Update
After careful consideration, the DeFi Steering Committee (DSC) has decided to not renew Ignite for Season 2 and will be sunsetting the program starting March 17th, 2025 by turning off rewards for period 6
Here's why:
— ZKsync Ignite (@ZKsyncIgnite) March 13, 2025
ZKsync Adjusts Strategy Amid Market Uncertainty
Ignite season two was canceled mostly because of unfavorable market conditions, according to ZKsync. The corporation decided to change its expenditure plan to be more conservative in the short to medium term since volatility is still high and pressure from many global economic factors calls for it.
Participants will still get all remaining promised rewards as planned; March 17, 2025, will be the last day of payout. No new incentive schemes are scheduled following that.
RWA Surge Pushes ZKsync to Second Place After Ethereum
The ZKsync ecosystem kept expanding fast even after Ignite was canceled. CNF reported that in the past 30 days, the total value of real assets (RWA) transacted on the network increased by 953.79%, reaching $2.03 billion. This figure places ZKsync as the second-largest blockchain in the RWA category, right behind Ethereum, which still leads with a value of $4.12 billion.
This large step is inseparable with the Layer-2 scalability solution supplied by ZKsync and institutional adoption. For applications seeking a quick and affordable ecosystem, ZKsync still looks to be somewhat appealing even without Ignite.
Exploits on Abstract Chain, Side Effects of a Growing Ecosystem?
Still, fast development does not always go without problems. A hack on Cardex, a blockchain-based fantasy game housed on Abstract Chain—part of the ZKsync ecosystem—caused losses to multiple users on February 18, 2025. Abstract Chain verified that this occurrence was an isolated one connected just to Cardex and had no effect on the ZKsync network overall.
Still, this event reminds us that the fast expansion of the blockchain ecosystem always involves security risks that need to be carefully expected.
Expands with UBS Gold Simulation and AI Advancements
In February, CNF has reported that UBS, one of the largest banks in Switzerland, successfully tested UBS Key4 Gold on the ZKsync Layer-2 Ethereum network. The simulation aimed to optimize the interoperability, privacy, and scalability of Key4 Gold, and allow customers to buy gold using stablecoins connected to Ethereum
Besides that, starting to enter the ZKsync ecosystem are AI-based technologies. A(i)gentFi, a platform for the creation, administration, and monetization of AI agents on the network, was first presented on December 12, 2024, by ZKsync-based DeFi wallet Holdstation.
As of press time, ZK is swapped hands at about $0.07096, up 4.26% over the last 24 hours and driving its market cap above the $260 million mark.
