Vitalik Buterin Backs ZKsync: Igniting Ethereum Layer 2 Innovation and Ushering in the Next Era of DeFi

The blockchain sector is experiencing a major transformation, spurred by Vitalik Buterin’s recent public support for ZKsync’s Atlas upgrade. This development only highlights the increasing relevance of zero-knowledge (ZK) proofs in Ethereum’s scaling roadmap, but also marks a significant turning point for decentralized finance (DeFi). As more institutional funds gravitate toward ZK-powered infrastructure, stands out as a top investment prospect for 2026.

Technical Foundations: ZKsync's Atlas Upgrade and the

ZK

Stack

Launched in October 2025, ZKsync’s Atlas upgrade marks a significant advancement in Layer 2 (L2) scalability. By enabling

with finality in just one second and minimal transaction fees, Atlas directly tackles Ethereum’s persistent throughput bottlenecks. At the heart of this progress is the ZK Stack, an open-source suite designed to facilitate smooth liquidity movement between Ethereum’s Layer 1 and L2 networks. This solution , a common issue in multi-layer systems, while boosting the efficiency of cross-chain transactions.

The technical impact is substantial. For example, the modular ZKsync OS and ZK rollups have

, resulting in stablecoins making up 30% of on-chain transactions. These figures demonstrate ZKsync’s capacity to meet both retail and institutional needs, especially in DeFi, where low costs and fast speeds are essential.

Market Dynamics: Institutional Adoption and Capital Flows

The Atlas upgrade has sparked a notable rise in institutional trust. ZKsync’s deflationary tokenomics—which channels revenue into buybacks, token burns, and staking rewards—has

for the ZK token after Buterin’s endorsement. This mirrors broader industry patterns: in net capital from ETFs in 2025, and StarkNet’s total value locked (TVL) tripled in Q4 2025, partly thanks to $72 million in BTC inflows.

Industry experts point out that ZKsync’s strength is its ability to combine Ethereum’s security with L2 performance. As a Bitget report notes, "

DeFi capital allocation by delivering institutional-level scalability without sacrificing Ethereum’s composability." This is further supported by a 20% rise in ZK token holder activity, in the platform’s governance and practical use.

The Fusaka Upgrade: Technical Roadmap and Ecosystem Synergies

Although the zkSync team has yet to officially unveil the Fusaka upgrade, Ethereum’s broader Fusaka plan—set for December 3, 2025—aims to further strengthen ZKsync’s market position. Notable features include PeerDAS (EIP-7594), which

instead of full "blobs," cutting down on bandwidth and storage needs. This improvement is projected to boost L2 throughput to 30,000 TPS, with the block gas ceiling rising from 45 million to 150 million units.

Additionally, Verkle Trees will make data verification easier for lightweight clients,

for network nodes and improving user interactions. Together with ZKsync’s anticipated Fusaka launch, these enhancements are set to help the platform lead the L2 space as moves toward a more modular framework.

Ethereum Foundation's Role: Personal Endorsement vs. Institutional Neutrality

It’s important to note that the Ethereum Foundation has not made any official endorsements of ZKsync for 2023–2025. Still, Buterin’s personal support—described as “emphasizing the significance of ZKsync’s contributions to the wider Ethereum ecosystem”—

. His praise for the team’s “underrated and valuable” work , even without formal institutional approval.

This situation illustrates a larger pattern: Ethereum’s progress is increasingly shaped by community-driven innovation rather than centralized leadership. While this decentralization is a strength, it can also bring volatility, as market sentiment often depends on key figures and project outcomes.

Investment Implications: A High-Conviction Play for 2026

From an investor’s standpoint, ZKsync’s alignment with Ethereum’s ZK-focused trajectory and the trend of institutional adoption make it a strong candidate for high-conviction investment. The technical strength of the Atlas and upcoming Fusaka upgrades, together with a deflationary token model and $15 billion in DeFi inflows, point to promising prospects for the ZK token.

Nonetheless, there are risks. The lack of official support from the Ethereum Foundation could invite regulatory challenges or competition from other L2 projects. Additionally, the success of the Fusaka upgrade will depend on smooth integration with Ethereum’s mainnet, which could face unexpected technical issues.

Conclusion

Vitalik Buterin’s backing of ZKsync goes beyond mere symbolism—it serves as a strategic endorsement of ZK-based scaling as the future of Ethereum. By solving scalability issues, cutting costs, and drawing institutional investment, ZKsync is transforming DeFi’s capital landscape and reshaping the L2 ecosystem. For those looking ahead to 2026, ZKsync offers a compelling blend of technical progress, market momentum, and favorable macro trends.