ZkSync Lite Shuts Down in 2026, Triggers Asset Migration

Quick Breakdown

• zkSync Lite, the original ZK rollup from 2020, processes fewer than 200 transactions per day before its planned 2026 retirement.​
• $50 million in user funds stay accessible with full Ethereum L1 withdrawal support during transition.​
• The focus shifts to the zkSync Era, ZK Stack chains, and cross-chain upgrades, such as the recent Atlas activation.​

US Bank crypto entry signals regulatory thaw

zkSync Lite, the legacy network that processed over one billion transactions since its launch, is scheduled to be phased out. The end of support for zkSync Lite, announced by zkSync in an X post, follows a sharp decline in daily activity since the introduction of zkSync Era, the full zkEVM in March 2023.

📌In 2026, we plan to deprecate ZKsync Lite (aka ZKsync 1.0), the original ZK-rollup we launched on Ethereum.

This is a planned, orderly sunset for a system that has served its purpose and does not affect any other ZKsync systems.

— ZKsync (@zksync) December 7, 2025

Users hold around $50 million in bridged assets, but withdrawals to Ethereum Layer 1 remain open, with detailed migration steps set for early 2026 release to prevent bridge congestion. The shutdown remains isolated to zkSync Lite and has no impact on Era or ZK Stack-built chains.​

ZK ecosystem builds a multi-chain future.

ZKsync restructured its governance token to give it clearer economic utility and better value capture across the zero-knowledge ecosystem. Under the new model, the token is tied directly to multiple revenue streams, from protocol fees on-chain to licensing fees from enterprise use off-chain. All of this will be funneled through a governance-managed system to support development, security, and community incentives, with the goal of keeping the network sustainable and independent over the long run.

Recent upgrades underscore the pivot: Atlas went live on December 5 with native cross-chain messaging across ZK networks, boosting daily active users as apps adapt. An October proof-of-performance boost added privacy tools for tokenized assets and high-throughput use cases. 

Meanwhile, on May 13, 2025, a security incident compromised the official X accounts of ZKsync and its developer, Matter Labs, through a phishing scam. Hackers took control of the accounts and disseminated fraudulent claims, including a false report that the company was under investigation by the U.S. Securities and Exchange Commission (SEC). 

The attackers also linked these deceptive posts to a counterfeit airdrop intended as a phishing trap for followers. This sophisticated social engineering attack briefly impacted the market, causing a temporary decline in the price of ZKsync’s native token, ZK. Matter Labs quickly confirmed that the posts were fake, announced that they had fully recovered control of their accounts, and is currently investigating the cause of the compromise, which may have been facilitated through delegated third-party accounts.