ZKsync Atlas Upgrade Redefines Ethereum Liquidity Network

ZKsync’s Atlas upgrade is now live, introducing technical changes aimed at improving how Ethereum handles transactions and connects with Layer-2 networks. It supports over 15,000 transactions per second, confirms them in about one second, and operates with very low fees.

According to investor Alex, who posted on X, these numbers only reveal part of the story. “For the first time, L2s can rely on Ethereum itself as the real-time liquidity hub for institutional capital,” he said. The Atlas upgrade enables L2-to-L2 interoperability in around one second and reduces L1-to-L2 latency below Ethereum’s block finality time. Hence, institutions can now move capital between layers without depending on separate liquidity hubs.

Before the Atlas upgrade, each Layer-2 network such as Arbitrum One, Base, or ZKsync Era had to maintain its own pool of funds. This approach often caused duplication and inefficiency. With Atlas, networks built on ZKsync can instead access Ethereum’s liquidity directly. This change makes separate liquidity hubs optional and allows liquidity to move more easily across connected networks.

The Atlas upgrade also changes how Ethereum functions in decentralized finance. It links liquidity from different networks and enables faster, more reliable transaction settlement. This means tokens or markets connected to Ethereum can be accessed through ZKsync-based networks, showing a shift in how Ethereum’s financial structure operates.

Launch and Core Enhancements

Matter Labs, the team behind ZKsync, developed Atlas to make Ethereum faster and more enterprise-ready. Alex Gluchowski, CEO of Matter Labs, said, “ZKsync represents the foundation of a new financial infrastructure era, where enterprises can operate on-chain with the same sovereignty and flexibility as internal systems, alongside cryptographic guarantees.”

Atlas also ensures sub-second settlement, higher throughput, and deeper Ethereum compatibility. Consequently, it allows real-world assets (RWA) and institutional capital to flow seamlessly between Ethereum and Layer-2s. This marks a strategic move toward making blockchain suitable for enterprise and institutional adoption.

Developer den0 (zk/acc) noted that Atlas brings L2s closer to institutional standards. “The real shift is that L2s can draw liquidity directly from Ethereum without maintaining a separate hub,” he said. He added that users will experience smoother transactions, less slippage, and cheaper fees. Wallet interfaces will simplify since users will no longer need to worry about which L2 they’re on.

Developers are affected by this change as well. Instead of creating broad liquidity hubs, they can build more focused networks for areas such as DeFi, payments, gaming, or fixed income. This shift allows projects to better meet technical and regulatory requirements within their specific use cases.

Market Impact and Expert Reactions

The market responded to the Atlas launch. According to CoinMarketCap, the ZKsync token (ZK) trades at $0.034426 as of writing, with a 17.71% gain in the last 24 hours and $53 million in trading volume. The token is up 7% over the past week, but surprisingly, it is down 38% over the past month.

Ethereum co-founder Vitalik Buterin commented on the upgrade, saying, “ZKsync has been doing a lot of underrated and valuable work in the Ethereum ecosystem. Excited to see this come from them!” His remarks point to the growing recognition of ZKsync’s role in Ethereum’s ongoing development.

Similarly, crypto analyst Kyledoops observed that Atlas could change the perception of ZKsync entirely. “$ZKsync isn’t the loudest L2, but Atlas might’ve just flipped the script,” he wrote. “It basically turns $ETH into the capital hub for ZKsync chains, exactly how institutions prefer to settle.” He also noted that ZKsync now ranks 2 in the RWA League table, reinforcing its growing relevance.

A month earlier, GRVT raised $19 million in Series A funding to build a hybrid decentralized exchange on ZKsync’s Layer-2 network. The funding round was co-led by Further Ventures and ZKsync, with support from Abu Dhabi’s sovereign wealth fund.

In addition, partners such as EigenCloud and 500 Global are contributing to the development of ZKsync’s infrastructure. These efforts reflect a continued interest from institutions in blockchain systems designed to handle growth and meet regulatory expectations.