The Lay-2 Zksync Network has announced that it will be the sun of its Ignite program, which rewarded users for providing liquidity, due to bearish market conditions.
“After a careful consideration, the Defi Steering Committee (DSC) has decided not to renew Ignite for season 2 and the Sun will be from the program from March 17, 2025 when the rewards for period 6,” Zksync published in X.
He added that the long -term vision focuses on the elastic network, which consists of multiple chains inside the Zksync ecosystem.
“Unfortunately, we are browsing a bear market at this time. In line with many other ecosystems, Zksync has decided to be more conservative with short and medium term spending in response to these evolutionary conditions,” he added. “To stay sustainable, we are hardening our approach and spending smarter, instead of fighting the winds against.”
Total blocked value (TVL) in Zksync has decreased by about 50% since January 30, since the broader cryptographic market is dealing with a correction that has seen that Bitcoin and Ether lose 13% and 27% of their respective market limits in the last month.
Zksync’s native token (ZK) has collapsed 35% in the same period.
