ZkSync Era stablecoin liquidity is experiencing major outflows for the first time in two months. A look at why the ZkSync snapshot may have had an impact on stablecoin liquidity.
ZkSync Era has reportedly experienced a 2% dip in stablecoin liquidity over the past week. You are probably wondering why this is such a big deal given how volatile things are in the crypto world. But there is a reason why this development is important.
As it turns out, this is the first time ZkSync Era has recorded a weekly dip in stablecoin liquidity in the past two months. The relative stability that the project’s stablecoin liquidity has achieved over the past few weeks. So a sudden change is sure to attract some attention.
In a surprising turn of events, the Zksync era has experienced its first net weekly drop in stablecoin liquidity since May this year.
— Emperor Osmo🧪 (@Flowslikeosmo) July 11, 2023
There has been a lot of speculation about the stablecoin dip. Some believe the change may be due to liquidity providers moving to different DeFi farming protocols. Perhaps the biggest possible reason is the upcoming ZkSync airdrop.
Is the ZkSync airdrop to blame?
A snapshot usually takes place prior to an airdrop. The purpose of snapshots is to determine who deserves the scheduled airdrop. This creates an incentive for users to hold a particular token or asset within a specific ecosystem. In this case, the airdrop for the launch of ZkSync’s native token is Era.
It was speculated that the recent dip in stablecoin liquidity on ZkSync Era was due to a post-snapshot liquidity exit. The platform would include a snapshot prior to the airdrop of its native platform. Individuals wanted to take advantage of the snapshot and the upcoming airdrop.
After research on the internet, there were several reports that the snapshot was taken. However, official sources have not yet confirmed this development. However, we did find this recent post about the upcoming airdrop suggesting that the timeline is quickly counting down to the token release.
In addition, the announcement confirmed a partnership between ZkSync and Ledger that will facilitate the airdrop.
Congratulations on the partnership between Ledger and zkSnyc!
Can now enjoy a faster and cheaper transaction experience with zkSnyc. As a token of appreciation
There is a special airdrop for everyone using the Ledger wallet and the Zksnyc network! pic.twitter.com/DF2eTpA9wz
— zkSync ∎ (@zkysncEra) July 11, 2023
So why the hype about ZkSync Era?
ZkSync is not entirely new. The first iteration was designed as an Ethereum layer-2 scaling solution with zero-knowledge technology. However, it lacked smart contract support. ZkSync Era is the version compatible with smart contracts. In addition, this new layer 2 scaling solution is designed to offer a lower cost, hence its appeal.
In summary, the excitement behind ZkSync Era is because it is the first ZkEVM layer 2 to join the Ethereum mainnet.
This post ZkSync Era stablecoin liquidity dips slightly: why is this a big deal?
was published first on https://ambcrypto.com/zksync-era-stablecoin-liquidity-dips-slightly-why-is-this-a-big-deal/