Layer-2 blockchain ZKsync has decided to halt its liquidity rewards program due to a sharp decline in the market.
The negative developments in the cryptocurrency industry in recent weeks and the general downtrend have also negatively affected ZKsync. The Ignite Program, which rewards users for providing liquidity, will officially end on March 17, 2025. The main reason behind the decision was explained as the difficult conditions in the market.
In an official statement, ZKsync said, "*The DeFi Executive Committee (DSC) has decided not to renew the second season of the Ignite Program after extensive considerations. We are ending the program as of the 6th semester, which will start on March 17," the statement said.
From now on, ZKsync plans to continue on its way through the Elastic Network, which consists of a multi-chain structure. The company also aims to adapt to market conditions by managing its resources more carefully and intelligently.
Are rewards driving selling pressure?
Recently, the total value locked on ZKsync (TVL) has dropped by nearly 50% since Jan. 30. In addition, the network's native cryptocurrency, the ZK token, has also lost 35% of its value in the past month. This rapid decline may have led to users quickly selling their tokens from the bounty program on the market, further increasing the selling pressure.
ZKsync has previously attracted attention with a controversial airdrop, victimizing many investors and users. The project, which was already experiencing difficult times after this event, continues to go through difficult times with the general decline in the market.
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Layer-2 blockchain ZKsync has decided to halt its liquidity rewards program due to a sharp decline in the market.
The negative developments in the cryptocurrency industry in recent weeks and the general downtrend have also negatively affected ZKsync. The Ignite Program, which rewards users for providing liquidity, will officially end on March 17, 2025. The main reason behind the decision was explained as the difficult conditions in the market.
In an official statement, ZKsync said, "*The DeFi Executive Committee (DSC) has decided not to renew the second season of the Ignite Program after extensive considerations. We are ending the program as of the 6th semester, which will start on March 17," the statement said.
From now on, ZKsync plans to continue on its way through the Elastic Network, which consists of a multi-chain structure. The company also aims to adapt to market conditions by managing its resources more carefully and intelligently.
Are rewards driving selling pressure?
Recently, the total value locked on ZKsync (TVL) has dropped by nearly 50% since Jan. 30. In addition, the network's native cryptocurrency, the ZK token, has also lost 35% of its value in the past month. This rapid decline may have led to users quickly selling their tokens from the bounty program on the market, further increasing the selling pressure.
ZKsync has previously attracted attention with a controversial airdrop, victimizing many investors and users. The project, which was already experiencing difficult times after this event, continues to go through difficult times with the general decline in the market.