Whale Alert: Early Investors Diving into zkSync with 32% of Holdings, Reveals Nansen Research

"Early Whales on zkSync: New Report Shows Significant Adoption of Layer 2 Scaling Solution for Ethereum"

Nansen Research, a data analytic firm, has published a report that provides insights into the behavior of early whales on zkSync, a Layer 2 scaling solution for Ethereum that employs zero-knowledge proofs to achieve high throughput and low fees. The report reveals that these early adopters have an average of 32% of their holdings on zkSync, indicating a significant amount of idle capital on the platform. The holdings mainly comprise spot Ethereum token (ETH), stablecoin USDC, and a distant third of MUTE, a new privacy-focused cryptocurrency.

The report further highlights that most of their activity on zkSync is concentrated around decentralized exchanges (DEX), especially liquidity providers (LPs) across SyncSwap, Izumi Finance, Mute, and Velocorexyz. Additionally, it notes that most LPs are in the ETH/USDC pools. At the same time, Pool (NASDAQ:POOL) 2s and altcoins (alts) make up a very negligible position, “indicating a lack of interest in zkSync alts.”

The data analytic firm further stressed the presence of a considerable idle capital waiting to be deployed, given the large number of spot holdings in ETH and USDC. It advises keeping track of new product launches, such as upcoming derivatives apps like UniDex Finance and Derivio, which are currently in testnet.

While the report notes the potential for profitable investment opportunities in the near term, it also warns users to exercise caution when interacting with protocols on zkSync. “There have been many rug pulls on zkSync,” the analytic noted, advising the crypto community to “always exercise caution before interacting with any protocols.”

The report provides valuable insights into the behavior of early whales on zkSync, indicating a considerable amount of idle capital on the platform. The report highlights that most of their activity is concentrated around decentralized exchanges (DEX), especially liquidity providers (LPs) across SyncSwap, Izumi Finance, Mute, and Velocorexyz. Additionally, the report notes that most LPs are in the ETH/USDC pools, while Pool (NASDAQ:POOL) 2s and altcoins (alts) make up a very negligible position.

The report further stresses the presence of a considerable idle capital waiting to be deployed, given the large number of spot holdings in ETH and USDC. It advises keeping track of new product launches, such as upcoming derivatives apps like UniDex Finance and Derivio, which are currently in testnet. While the report notes the potential for profitable investment opportunities in the near term, it also warns users to exercise caution when interacting with protocols on zkSync.

“There have been many rug pulls on zkSync,” the analytic noted, advising the crypto community to “always exercise caution before interacting with any protocols.” The report is a valuable resource for investors looking to understand the behavior of early whales on zkSync and make informed investment decisions based on the insights provided.

Martin Reid

Martin Reid

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