Ethereum's First ZK-Rollup ZKsync Lite to Shut Down in 2026

ZKsync has announced that it will shut down ZKsync Lite, the first zero-knowledge rollup on Ethereum, in 2026. This decision comes as the protocol focuses on enhancing the ZKsync network and ZK Stack-supported chains. Users are not required to take immediate action, as all functionalities will continue to operate normally until a detailed migration plan is released.

Key Takeaways

ZKsync Lite, Ethereum’s first zero-knowledge rollup, will be deprecated in 2026.
The transition focuses on the ZKsync network and ZK Stack chains.
There is no need for immediate user action; funds remain secure.
The protocol has gained institutional interest, with notable projects testing ZKsync technology.
Recent security incidents have raised concerns about the platform's resilience.

From Pioneer to Legacy System

ZKsync Lite was a trailblazer as the first zero-knowledge rollup on Ethereum, introducing technologies that later developed into ZKsync Era and the Elastic Network. This protocol tackled key challenges for Ethereum like high transaction fees and slow processing times by handling transactions off-chain and sending cryptographic validity proofs back to Layer 1.

The project's popularity surged in November 2025 when Ethereum co-founder Vitalik Buterin publicly supported ZKsync after its Atlas upgrade, calling it “underrated and valuable.” His endorsement sparked institutional interest, leading to a 50% increase in ZK token prices and establishing ZKsync as a fundamental part of Ethereum’s “Lean Ethereum” scaling strategy.

ZKsync transitioned from Lite to ZKsync Era in March 2023, becoming the first public zkEVM. The June 2024 ZKsync 3.0 upgrade further transformed it from a single Layer 2 solution into the Elastic Network, which comprises a network of autonomous ZK chains that share liquidity and security via cryptographic proofs instead of traditional bridges.

Institutional Traction Validates ZK Technology

Although ZKsync Lite will be phased out, the ZKsync ecosystem is securing significant institutional interest. Deutsche Bank is working on an Ethereum Layer 2 blockchain using ZKsync technology as part of Project Dama 2, which includes 24 financial institutions trialing the blockchain for asset tokenization within Singapore’s regulatory framework.

Additionally, UBS has tested ZKsync Validium for its Key4 Gold product, exploring the platform’s capability to support private and scalable tokenized gold investments. Tradable also tokenized $2.1 billion in institutional-grade private credit on ZKsync, representing nearly 90% of the network’s market share in real-world asset protocols.

ZKsync Lite to Shut Down - Tradable Metrics Chart

In October 2024, the Ethereum Foundation launched “Ethereum for Institutions,” offering structured support to businesses looking to use blockchain technology, employing zero-knowledge proofs, fully homomorphic encryption, and trusted execution environments. Innovative projects like Chainlink, RAILGUN, and Aztec Network are developing privacy-preserving smart contracts to secure counterparty information while ensuring transparency.

Security Incidents Test Platform Resilience

The announcement regarding ZKsync Lite’s deprecation follows two notable security breaches experienced by ZKsync’s protocols in 2025.

In April, an attacker exploited administrative access to the airdrop distribution contract, minting 111 million unclaimed ZK tokens worth approximately $5 million during the protocol's distribution to ecosystem participants. The hacker agreed to return 90% of the stolen assets for a 10% bounty, transferring nearly $5.7 million back to the ZKsync Security Council within a designated 72-hour safe harbor window. Interestingly, the amount recovered surpassed the initial stolen value due to subsequent token price increases, with ZK rising by 16.6% and ETH by 8.8% after the incident.

Just one month later, attackers compromised the official X accounts of ZKsync and Matter Labs, disseminating false regulatory alerts that hinted at SEC investigations and Treasury Department sanctions. They also shared phishing links intending to promote a fake ZK token airdrop aimed at draining users' wallets, resulting in a 5% drop in token price, which came after a substantial 38.5% weekly increase.

The breaches took place through compromised delegated accounts that had limited posting rights, which have since been disconnected. These incidents contribute to broader industry concerns, as crypto hacks resulted in losses totaling $1.6 billion within the first quarter of 2025 alone, marking one of the most challenging periods in crypto security history.