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

A report from knowledge analytics agency Nansen Analysis captured early whale habits on zkSync, a Layer 2 scaling resolution for Ethereum that makes use of zero-knowledge proofs to realize excessive throughput and costs. low.

In response to 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. Holdings primarily embody spot token Ethereum (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 targeted on Decentralized Exchanges (DEXs), significantly Liquidity Suppliers (LPs) on SyncSwap, Izumi Finance, Mute, and Velocorexyz. Moreover, he notes that the majority LPs are in ETH/USDC swimming pools. On the identical time, pool 2 and altcoins (alts) occupy a really negligible place, “indicating a scarcity of curiosity in zkSync’s alts”.

The information analytics firm additional highlighted the presence of appreciable idle capital ready to be deployed, given the massive variety of spot holdings in ETH and USDC. He advises protecting monitor of latest product launches, comparable to upcoming spin-off apps like UniDex Finance and Derivio, that are presently in testnet.

Whereas the report notes the potential for worthwhile short-term funding alternatives, it additionally warns customers to train warning when interacting with protocols on zkSync. “There have been many zkSync rug pulls,” the analyst famous, advising the crypto group to “all the time train warning earlier than interacting with protocols.”