zkSync (ZK) is melting day by day: Investors are worried

on June 17 zkSync‘s highly anticipated token, ZK, entered the market with a market value of 1 billion dollars.

Following a momentary increase in the first few hours of launch, ZK’s market price gradually decreased over the following days, probably due to the constant selling pressure from airdrop buyers and generally weak market conditions.

ZK market value currently stands at approximately $600 million, and at the time of writing, its fully diluted valuation is $3.4 billion, a 40 percent decrease from its valuation at launch.

Although network activity was active, ToM remained weak

In the week leading up to the ZK launch, the Zsync Era experienced a relatively quiet period in terms of new addresses on the chain; The average was around 7,000 per day. However, on launch day, this number increased rapidly, and the number of new addresses more than doubled to 18,000 on June 17, ZK said.

The excitement hasn’t diminished after the initial launch. The next day, this number increased by over 76 percent to 31,800 addresses, and the next day, June 19, it increased by another 12 percent, reaching 35,800 new addresses for the day. Meanwhile, the 7-day moving average of transactions in the ZKsync Era reached a three-month high on the day of the ZK token’s launch, with more than 1.8 million transactions recorded as users flocked to receive their airdrops.

Unfortunately for the network, this increase in activity turned out to be short-lived. The number of processes in the chain dropped by 37 percent the next day and continued its decline the day after, dropping 32 percent.

The 7-day moving average for active addresses in Zync Era also painted a similarly dramatic picture. The day the ZK token was launched saw an all-time high of approximately 675,000 active addresses on the network. Just three days after the token was launched, the number of active addresses halved.