Layer-2 network ZKsync has made the decision to sunset the Ignite Program, which rewarded users for providing liquidity, citing bearish market conditions.
According to a post on X, ZKsync stated, “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.”
The focus will now shift towards the Elastic Network, which consists of multiple chains within the ZKsync ecosystem.
Due to the current bearish market, ZKsync has opted to be more conservative with spending in response to the evolving conditions. The priority is to tighten focus and spend wisely for long-term sustainability.
Total value locked (TVL) on ZKsync has decreased by approximately 50% since Jan. 30, reflecting the broader correction in the crypto market where bitcoin and ether have experienced declines of 13% and 27% in market caps over the past month. ZKsync’s native token (ZK) has also seen a 35% drop during the same period.
