Previously, I posted this analysis, wherein I gave a brief discription of zksync and went on to analyze the number of unique wallets, and the total transactions of ETH from the Ethereum mainnet to the zksync network, over the past 60 days.

Building on the previous analysis, we will now analyze the flow of erc20 tokens, deposited to zksync from the Ethereum network to zksync.

• We will break down the deposits by token, considering those tokens, which combine to make up the majority of the volume and/or transaction count.
• We will compare these tokens based on
  • number of transactions
  • dollar volume
  • aggregated over the entire 60 day period
  • and aggregated daily.
• We wil draw pretty charts
• We will infer dramatic insights

For the first leg of our journey, we group the data by token and collect the total transactions and the total volume for each token. There were a total of 67 unique tokens deposited, but as one can see from the above donut chart that a few tokens dominate.

Key Insights:

• We note that, by far ETh is the main currency being transferred. Recall from the previous analysis around 70 thousand distinct addresses which sent ETH to zksync, as of mid June. You can see a more up to date number below.

• Most of the transactions are comprised of the three major stable coins, USDC, USDT and DAI.
• Surprise appearances came from LDO, the Lido governance token, and REP v1, a deprecated token migrating to v2. There is probably a story behind this. (Yep, that's right. I leave that as an excercise for the reader).
• After those 4 tokens, the remainder are fairly well distributed. For completeness, this data is presented, in the table below, for the super curious.

Above, we see that when it comes to volume, LDO plays a much smaller role, but it is still in the top 10. Now,

• WBTC, "wrapped bitcoin", is the third leading erc20 token by volume. It shouldn't be too surprising, that WBTC barely showed up in the top ten in terms of number of transaction, as WBTC is pegged to bitcoin, which is generally traded in bigger chunks.

• DAI has a much smaller roll in the mix, although they still come in at the number 4 spot.

• USDC accounts for half the total volume deposited to zksync that isn't ETH.

• Again, none of these numbers come close to ETH total volume of 65 million and in fact the sum usd value of all the erc_20 token deposits is less than the volume of ETH deposited.

Key Insights:

• Looking at the daily transaction counts, we notice, that DAI has overtaken USDT in terms of frequency of deposits. We see that the Lido deposit, for the most part happened on two days: May 22 and May 24.
• These two days of abnormaly high levels of deposit transactions were not associated with any kind of increase in volume. In fact, they were lower volume levels than normal.
• On the volume side of things, the basic distribution among the leaders remains reasonably constant.
• what jumps out of the chart are the two days of May 11 and May 12. Further study is needed and the reader is encouraged to research further!

ERC20 tokens

For those of you, just now, dipping your toes into the crypto rabbit hole and aren't sure what an ERC20 token is, it is a standard, invoked by the ethereum mainnet, which makes it possible for anyone to create their own currency. Their is much leeway within the structure of the ERC20 contracts, to have all different types of ways of distributing, minting, burning, etc. based on need. Ethereum, is not an ERC20 token. It is the platform the ERC20 tokens live on. There are, however, ERC20 tokens that are pegged to the price of ETH. This allows for the ability to trade ETH against other tokens and is a mechanism for bridging tokens.

Final Thoughts:

• The distribution of transaction counts across tokens was much less correlated than usual. Clearly some tokens (LDO) had a lot of transactions for small amounts whereas other tokens (WBTC) had less transactions for a large amount.
• The dates of May 11 and May 12, as well as May 22 and 24th should be examined further by the eager student. The former involves the volume transferred from L1 to L2. The latter involving inordinately large total daily transactions, with LDO of particular note.