The Ethereum Foundation has announced its plans to create a native Layer 1 zkEVM aimed at improving scalability and privacy by 2025.
Plans for zkEVM Integration
The Ethereum Foundation has announced plans to integrate a native Layer 1 zkEVM by 2025. This move aims to transform the scalability and privacy of the network, led by new co-leaders Hsiao-Wei Wang and Tomasz Stańczak, following Vitalik Buterin's step back from daily operations.
Impact on Institutional Interest
The transition to zk-proofs is expected to positively influence institutional interest and enterprise use cases. Improvements in privacy and scalability are seen as catalysts for this interest. Cathie Wood from Ark Invest highlighted the growing attention from institutional investors towards Ethereum.
Market and Competitors
The increased confidence in Ethereum may lead to a rise in its market share. While upgrades are traditionally accompanied by volatility, they often tend to increase total value locked (TVL) and user adoption. The new developments suggest Ethereum may put pressure on competitors like Solana and BNB Chain.
The integration of a native Layer 1 zkEVM could significantly impact Ethereum's market position, strengthening its competitiveness and attracting additional institutional interest.
