ZKsync Ends Liquidity Rewards Amid Bearish Market Trends Impacting Major Coins

Layer-2 network ZKsync announced the sunset of its Ignite liquidity rewards program on March 17, 2025, as it faces a challenging bearish market. The decision comes amid a broader market correction affecting major cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH) have seen declines of 13% and 27% respectively, while ZKsync's native token (ZK) plunged 35%. The move is a conservative measure by the DeFi Steering Committee to tighten spending and focus on long-term sustainability via its envisioned Elastic Network. In the short term, reduced liquidity incentives and lower total value locked (TVL) will likely contribute to ongoing declines. However, strong fundamentals and institutional backing may help BTC and ETH recover, and ZK might rebound in the long term if its strategic vision is successfully executed.