ZKsync price rallies 170% in 2 days as ZK token moves toward utility

ZKsync price has rallied 170% from its recent lows, continuing its bullish momentum as it prepares for the next significant move. This surge is driven by a major tokenomics overhaul and changes in the utility of the ZK token, signaling potential for future growth.

The price of ZKsync (ZK) has surged from $0.028 to a peak of $0.075, marking an impressive 170% rally. Significant technical signals include:

• Key Support Levels: After the initial surge, support has been established around $0.045, with local consolidation above $0.048.
• Bullish Structure Intact: The price maintains a higher-high (HH) and higher-low (HL) structural pattern, keeping the upward momentum.
• 9 EMA Alignment: ZKsync price aligns with the daily 9 Exponential Moving Average (EMA), suggesting that buyers control short-term momentum.

Additionally, the BBWP volatility gauge shows signs of contraction after extreme levels during the rally, indicating that the market is resetting for its next move. If the price holds above $0.048, there’s potential for a continuation breakout. However, a breakdown below $0.045 could risk a deeper retracement toward $0.030.

ZKsync's evolving tokenomics is a critical driver of the current price momentum. Earlier this week, Matter Labs CEO Alex Gluchowski introduced the framework titled “From Governance to Utility: ZK Token Proposal, Part I.” This initiative aims to:

• Transform the ZK token into a utility-bearing instrument.
• Channel economic value directly into the ecosystem via on-chain activity and enterprise adoption.

This represents a major shift from the token’s original governance role to one of real economic utility, marking a significant turning point for the project’s underlying value proposition.

Under the proposal, ZKsync intends to establish two primary revenue streams:

1. Interoperability Fees: Collected across its Layer-2 rollups for transactions and activities.
2. Off-Chain Licensing Revenue: Generated from institutional tools built on the protocol.

These revenues will fund the buybacks of ZK tokens, with acquired tokens allocated to:

• Periodic Burns: Reducing the circulating supply.
• Staking Rewards: Rewarding decentralized operators.
• Ecosystem Grants: Supporting developers and public goods.

This comprehensive framework aims to enhance network growth while aligning economic incentives for all stakeholders.

A major milestone in the ZKnomics framework is the activation of its staking component. Following the passage of TPP-12, the pilot staking program is set to go live, allowing ZK token holders to participate actively in the ecosystem. Recent developments include:

• Voting Results: The proposal passed with a majority of 905.6M ZK votes in favor.
• Staking Utility: Token holders can now earn rewards while contributing to the network’s decentralization and security.

The success of this program will play a pivotal role in achieving the goals outlined in the tokenomics overhaul.