ZK is approaching the lower boundary of a bullish channel and has a high chance of rebounding.
The ZKsync team works in alliances to increase the adoption of this technology.
ZKsync (ZK), governance token of the eponymous Ethereum rollup, consolidates a bullish channel that – if the trend continues – could take it to new maximum prices in this same cycle.
At the time of this post, ZK is approaching the bottom of the channel (yellow lines on the internal chart of this post). This means that, should the upward movement develop, this could be a good entry point into the investment.
The following graph, provided by TradingViewshows the ZK price from the time of launch until today, January 14, 2025:
It is very possible that the next movements of the ZK token will be greatly influenced by how the rest of the market behaves, with bitcoin (BTC) leading the way.
As CriptoNoticias has reported, this is expected to be a week of high volatility and it would also be next week with the inauguration of Donald Trump as president of the United States.
But ZK not only depends on bitcoin and the rest of the cryptocurrencies, but has its own reasons for increasing the price.
As mentioned at the beginning, ZKSync is a rollup (i.e., a second-layer scalability solution) of the Ethereum ecosystem. Therefore, the growth of this ecosystem should positively impact the price of the governance token.
The analysis and investment firm, Bernstein, is convinced that Ethereum will be one of the outstanding ecosystems during the current year. If this is true, adoption will also increase in its scalability solutions.
Also, The ZKsync team is working to increase the adoption and use of this network. A characteristic of ZKSync is that other networks with specific utilities can be built on top of it.
For example, Treasure, a “decentralized game console” launched its mainnet on ZKsync in mid-December. This sub-network includes the native MAGIC token that “allows transactions, community decisions and everything related to the platform’s economy.”
More recently, LaChaina network designed specifically for use in Latin America, announced that it will join ZKsync’s Elastic Network.
A statement sent today to CriptoNoticias reads: “By moving to ZKsync, LaChain is upgrading its blockchain for mass adoption and institutional scale by launching on one of the most advanced zero-knowledge Ethereum scaling technologies.”
Sebastián Serrano, CEO and founder of Ripio, the company behind the development of LaChain, has said that this development “is a big leap for LaChain.”
«When we created LaChain we knew of its potential for the cryptocurrency market and now, we have taken another big step to develop the scalability, efficiency and security of LaChain. By joining the Elastic Network, LaChain becomes part of a multi-chain ecosystem that will allow projects launched on the new blockchain to be accessible from other blockchains within the ZKsync ecosystem – allowing regional projects to scale their solutions for global impact. “We work every day to make blockchain technology an engine of change for our region.”
Sebastián Serrano, CEO and founder of Ripio.
At the end of last year, CriptoNoticias had also reported that The Government of the City of Buenos Aires, capital of Argentina, was using ZKSync for your decentralized digital identity system.
If these use cases turn out to be successful, they will probably end up positively impacting ZK’s share price.