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Ethereum’s Liquidity Revolution: ZKsync Atlas Upgrade Unleashes Institutional-Grade Scaling

Ethereum’s Liquidity Revolution: ZKsync Atlas Upgrade Unleashes Institutional-Grade Scaling

Published:
2025-11-02 16:00:39
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The recent deployment of ZKsync's Atlas upgrade marks a transformative moment for Ethereum's scalability and liquidity infrastructure. This major technical enhancement fundamentally redefines Ethereum's capacity as a liquidity network, achieving unprecedented throughput of over 15,000 transactions per second while maintaining confirmation times of approximately one second with minimal fees. The upgrade represents a quantum leap in Layer-2 interoperability, enabling seamless communication and asset transfer between different L2 solutions. According to prominent investor Alex, this development positions ethereum as a real-time liquidity hub capable of handling institutional capital flows with efficiency previously unseen in the blockchain space. The Atlas upgrade addresses Ethereum's longstanding scalability challenges while preserving its security and decentralization principles. By optimizing transaction handling and enhancing cross-chain compatibility, ZKsync has created a foundation for mass adoption of decentralized applications and financial services. The upgrade's technical architecture allows for sophisticated smart contract functionality while maintaining the cost-effectiveness essential for mainstream usage. This breakthrough comes at a crucial time when institutional interest in blockchain technology is reaching new heights, and the demand for scalable, interoperable solutions has never been greater. The enhanced throughput and reduced latency open up new possibilities for high-frequency trading, real-time settlements, and complex financial instruments built on Ethereum's robust infrastructure. As the ecosystem continues to evolve, the Atlas upgrade establishes a new benchmark for what's possible in blockchain scalability, potentially accelerating Ethereum's journey toward becoming the foundational layer for the global digital economy. The implications for decentralized finance, gaming, and enterprise applications are profound, as developers now have access to infrastructure that can support applications at web-scale while maintaining the security guarantees of Ethereum's base layer.

ZKsync Atlas Upgrade Redefines Ethereum Liquidity Network

ZKsync's Atlas upgrade has gone live, introducing technical enhancements designed to optimize Ethereum's transaction handling and Layer-2 interoperability. The upgrade supports over 15,000 transactions per second, with confirmation times of approximately one second and minimal fees. According to investor Alex, the upgrade transforms Ethereum into a real-time liquidity hub for institutional capital, enabling seamless L2-to-L2 interoperability and reducing L1-to-L2 latency below Ethereum's block finality time.

Previously, Layer-2 networks like Arbitrum One and ZKsync Era required separate liquidity pools, leading to inefficiencies. Atlas eliminates this redundancy by allowing direct access to Ethereum's liquidity, making standalone hubs optional. The upgrade also enhances decentralized finance by linking liquidity across networks and enabling faster, more reliable settlements.

Vitalik Buterin Endorses ZKsync's Atlas Upgrade for Ethereum Scalability

Ethereum co-founder Vitalik Buterin has publicly praised ZKsync's Atlas upgrade, calling the team's contributions "underrated and valuable." The Layer-2 solution now processes over 15,000 transactions per second with one-second finality, while transaction fees have plummeted to near-zero levels.

The upgrade transforms Ethereum's transaction processing by eliminating the need for separate liquidity pools across Layer-2 networks. Ethereum now serves as the central capital hub for all zksync chains, creating a more efficient ecosystem. "ZKsync has been doing a lot of underrated and valuable work in the Ethereum ecosystem," Buterin remarked in a recent social media post.

MEV Deters Institutional Participation in DeFi, Amplifying Risks for Retail Users

Maximal extractable value (MEV) is emerging as a critical barrier to institutional adoption of decentralized finance. The practice—where validators reorder transactions for profit—creates front-running risks and market manipulation concerns that traditional finance players find untenable. Aditya Palepu of DEX Labs notes this exodus of professional traders directly impacts market quality, leaving retail investors exposed to heightened volatility and inefficient pricing.

Privacy-enhancing technologies like trusted execution environments (TEEs) may offer partial solutions. Without such safeguards, DeFi risks remaining a playground for predatory trading strategies rather than evolving into a mature financial ecosystem. The absence of institutional liquidity providers exacerbates slippage and widens bid-ask spreads—costs ultimately borne by everyday users.

BitMine Technologies Acquires $29.28M in Ethereum via Galaxy Digital OTC Desk

BitMine Technologies, led by Tom Lee, has purchased 7,660 ETH worth approximately $29.28 million through Galaxy Digital's over-the-counter trading desk. The transaction, executed in two batches of 3,818 and 3,842 ETH, was priced at an average of $3,823 per token—aligning with market rates at the time.

The MOVE advances BitMine's "Alchemy of 5%" strategy to accumulate 5% of Ethereum's circulating supply. The firm now holds 2.8% of all ETH, valued at $12.24 billion, cementing its position as the largest corporate holder of the asset. Earlier this year, BitMine raised $365 million through a share sale to fund its accumulation strategy, which prioritizes OTC purchases to minimize market impact.

Institutional Buyers Quietly Accumulate Ethereum as Retail Interest Fades

BitMine's latest $29 million Ethereum purchase, sourced from Galaxy Digital, underscores growing institutional confidence in ETH despite waning retail enthusiasm. On-chain data reveals two separate transfers to BitMine’s address, adding to its prior accumulation exceeding $820 million—a move analysts interpret as positioning for the next market uptrend.

While institutional players build positions, retail sentiment cools. Kalshi’s prediction markets show expectations for Ethereum reaching $5,000 by 2025 have dropped to 34%, down from 40% earlier this month. Federal Reserve Chair Jerome Powell’s remarks ruling out near-term rate cuts have further dampened speculative fervor.

Market strategists note this divergence often signals early-stage accumulation. Ethereum’s deflationary mechanisms—staking, layer-2 growth, and token burns—could amplify price pressure if large-scale buying persists. Analyst Ted Pillows observes BitMine’s reported weekly purchases of $200-$300 million may tighten supply faster than anticipated.

ZK Coin Surges 140% Amid ZKsync Atlas Upgrade

ZK Coin defied October's bearish crypto trend with a 140% rally in early November, peaking at $0.0633. The surge follows the ZKsync Atlas upgrade, which enables 15,000 transactions per second using zero-knowledge proofs—transforming Ethereum into a real-time liquidity hub for institutional capital.

Atlas slashes L2 interaction times to one second and reduces L1-L2 latency below Ethereum's block finalization threshold. This eliminates the need for separate liquidity pools for real-world asset flows, amplifying Ethereum's native scalability. The breakthrough comes as competing altcoins struggle with thinning liquidity and intensifying L2 competition.

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