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ZK Technology Experiences Price Spike: Advances in Blockchain Scalability and Signs of Institutional Embrace

ZK Technology Experiences Price Spike: Advances in Blockchain Scalability and Signs of Institutional Embrace

Bitget-RWA2025/11/16 18:44
By:Bitget-RWA

- Zero-Knowledge (ZK) technology's valuation surged in 2025 due to blockchain scalability breakthroughs and institutional adoption, with ZK rollups achieving 15,000 TPS and $3.5B total value locked. - Platforms like ZKsync and StarkNet enabled real-world applications (tokenized assets, AI contracts) while Deutsche Bank and Sony adopted ZK for confidential settlements and digital rights management. - Ethereum's zkEVM integration and regulatory clarity via U.S. acts accelerated institutional trust, with proj

The sharp rise in the valuation of Zero-Knowledge (ZK) technology has sparked considerable excitement among investors, fueled by major strides in blockchain scalability and growing interest from institutional players. As the cryptocurrency sector adjusts to the aftermath of the 2024 correction, ZK-powered solutions—especially

rollups—have become essential in overcoming Ethereum’s throughput bottlenecks and drawing institutional investments. This report delves into the technical and market dynamics driving this momentum, highlighting how scalability innovations and institutional confidence are transforming the ZK landscape.

Scalability Breakthroughs: ZK Rollups as the New Infrastructure Layer

By 2025, Zero-Knowledge rollups reached a pivotal milestone, with platforms such as ZKsync and StarkNet achieving transaction speeds on par with conventional financial systems. The Atlas upgrade to ZKsync, released in October 2025, boosted its throughput to 15,000 transactions per second (TPS), marking a 300% improvement over 2023 figures

. This significant performance gain has paved the way for practical uses like tokenized asset settlements and AI-powered smart contracts that demand near-instant finality.

StarkNet has capitalized on its Cairo programming language to attract developers focused on ZK-centric applications in sectors such as gaming and finance. By October 2025, the combined total value locked (TVL) in ZK rollups (zkSync,

, Scroll) had climbed to $3.5 billion, with daily transaction counts surpassing 1 million . These achievements highlight the transition from theoretical promise to real-world functionality, positioning ZK rollups as the infrastructure of choice for businesses.

ZK Technology Experiences Price Spike: Advances in Blockchain Scalability and Signs of Institutional Embrace image 0

Institutional Adoption: From Confidential Settlements to Regulatory Clarity

Adoption of ZK technology by institutions has gained momentum as organizations look for privacy-focused solutions to meet compliance needs and facilitate international operations. Deutsche Bank and Sony have implemented ZK-based frameworks for secure settlements and digital rights management, using zero-knowledge proofs to confirm transaction authenticity without revealing confidential information

. This approach aligns with the U.S. GENIUS Act and CLARITY Act, which have clarified regulations for stablecoins and blockchain infrastructure, thereby lowering institutional risk.

Ethereum’s deliberate move toward zkEVM integration at the Layer 1 level has further enhanced ZK’s attractiveness to institutions. By ensuring compatibility with existing

tools, the network has made it easier for enterprises to adopt. As Joseph Lubin from SharpLink Gaming observed, Ethereum is undergoing a “massive acceleration of an institutional adoption super cycle,” with initiatives like (a fully Ethereum-compatible Layer 2) drawing $200 million in ETH investments.

Price Surge Correlation: Technical and Economic Catalysts

The ZK token’s rally in the fourth quarter of 2025—reaching highs of $0.085–$0.090—is closely linked to these advances in scalability and adoption. The Atlas upgrade brought about 1-second finality and a deflationary token model, where transaction fees are used for buybacks and staking rewards. This structure has increased scarcity, fueling demand from both individual and institutional investors.

Additionally, forecasts for Ethereum’s Layer 2 expansion (projected to hit $90 billion by 2031 with a 60.7% compound annual growth rate

) have strengthened the long-term outlook for ZK. Major institutions like Franklin Templeton and JPMorgan are now channeling funds into ZK-focused investments, viewing them as a safeguard against broader economic uncertainty.

Challenges and Outlook

Despite these advances, obstacles persist. Integrating ZK solutions with legacy infrastructure in industries such as healthcare and manufacturing still demands further technological progress. Nevertheless, the emergence of Blockchain-as-a-Service (BaaS) platforms is easing this transition, allowing companies to implement ZK applications without a complete overhaul of their current systems

.

For investors, the main message is evident: the rise in ZK technology’s value is grounded in its ability to address real-world issues of scalability and privacy, rather than mere speculation. As institutional participation grows and Ethereum’s development continues, ZK rollups are set to underpin the next wave of financial and enterprise innovation.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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