ZKsync Lite, the original zero-knowledge rollup on Ethereum, is scheduled to shut down in 2026, as confirmed by Matter Labs, the project”s developer. The announcement, made via an official statement on social media platform X, described the impending closure as a “planned, orderly sunset.” Importantly, the company reassured users that this transition will not impact any other services.
Launched in 2020, ZKsync Lite was engineered to facilitate rapid asset transfers and the minting of non-fungible tokens (NFTs). However, it has since fallen behind due to its inability to support smart contracts, thereby allowing newer solutions to take precedence. Development of ZKsync Lite ceased in early 2023 when Matter Labs introduced its more sophisticated successor, zkSync Era, which accommodates smart contract functionality.
At its essence, the Lite network served as a pioneering proof-of-concept for zero-knowledge rollups, demonstrating the capability of validating transactions prior to their batching and final confirmation on Ethereum. The Matter Labs team characterized it as a significant achievement that confirmed the feasibility of innovative approaches within the blockchain space.
Despite the announcement regarding its closure, operations on ZKsync Lite will proceed without interruption for existing users. Funds remain secure, and withdrawals to Ethereum”s Layer 1 will function through current methods until further notifications are issued. As of now, approximately $50 million is bridged to ZKsync Lite, according to data from DefiLlama. Nonetheless, network activity has seen a marked decline, with only 330 user operations logged in the past day, indicating a shift in preference toward newer alternatives. In contrast, zkSync Era has garnered about $36.4 million in DeFi value, with user interactions exceeding 22,000 transactions in a single day.
Within the broader ZKsync ecosystem, this decision coincides with other notable changes. The project recently terminated its Ignite liquidity reward program, citing ongoing bearish market conditions. Furthermore, co-creator Alex Gluchowski has proposed a restructuring of the ZKsync governance token, aiming to align it more closely with the network”s fee structure to enhance “economic utility.”
Meanwhile, Ethereum itself has experienced a modest price recovery, with ETH rising by 2.99% to $3,135. The cryptocurrency has been navigating a narrow trading range while attempting to break above resistance levels established in October. A strong closing above $3,240 could indicate a push toward the 200-day exponential moving average, currently near $3,459. Technical indicators such as the Relative Strength Index (RSI) are trending upwards, while the Moving Average Convergence Divergence (MACD) is approaching the zero line, suggesting a cautious upward bias. Should selling pressure persist and ETH dip below $3,000, the next support level may be around the November low of $2,623.
