Why Ronin and ZKsync Saw the Largest Onchain Activity Declines in 2025

In 2025, Ronin and ZKsync recorded the steepest year-over-year declines in onchain activity among major Layer 2 and sidechain blockchain solutions, with transaction volumes dropping by approximately 45% and 40% respectively. This contraction, linked primarily to the fading of previously viral NFT and DeFi trends, highlights challenges in sustaining user engagement beyond transient hype cycles.

What happened

Data from 2025 confirms that Ronin and ZKsync experienced the most significant decreases in onchain transactions compared to their Layer 2 and sidechain peers. Ronin’s transaction count fell roughly 45%, a decline closely associated with a marked reduction in Axie Infinity gameplay and NFT trading volume—activities that had driven much of Ronin’s prior network usage. Similarly, ZKsync saw a 40% drop in transactions, coinciding with diminished interest in specific decentralized finance (DeFi) projects and NFT launches that had fueled spikes in user activity during 2024.

In contrast, other Layer 2 solutions such as Arbitrum and Optimism exhibited more stable or only modest decreases in activity, suggesting that the downturn was not uniform across the ecosystem. These platforms benefit from broader and more diversified application bases, which may have contributed to their relative resilience.

Official disclosures from the developers of Ronin and ZKsync provide strategic context for these shifts. Sky Mavis, Ronin’s developer, acknowledged in their 2025 Q1 report a deliberate pivot away from Axie Infinity’s volume-driven growth model. Instead, the company is focusing on ecosystem diversification and infrastructure improvements, indicating a move away from reliance on a single “killer app.” Matter Labs, the team behind ZKsync, similarly reported in their 2025 developer update that their priorities have shifted toward protocol upgrades and enhancing long-term scalability rather than chasing short-term transaction volume driven by viral trends.

Why this matters

The declines in Ronin and ZKsync’s onchain activity underscore the volatility inherent in blockchain ecosystems heavily dependent on transient viral phenomena. The rapid rise and fall of Axie Infinity on Ronin and high-profile NFT/DeFi launches on ZKsync illustrate that such hype-driven engagement does not guarantee sustained user participation or network health.

The contrast with more stable Layer 2 networks like Arbitrum and Optimism suggests that ecosystems with diversified applications and steady developer and user growth may better withstand shocks to activity. This differentiation is significant for stakeholders evaluating the resilience and long-term viability of blockchain platforms.

Moreover, the strategic shifts by Sky Mavis and Matter Labs reflect an industry-wide recognition that volume-driven growth models are often unsustainable. Prioritizing infrastructure robustness and ecosystem depth may provide a more durable foundation, albeit potentially at the cost of short-term user engagement metrics.

These developments have broader implications for market participants and policymakers as they highlight the importance of diversified value propositions in emerging blockchain ecosystems. Overreliance on single applications or viral trends can result in sharp activity fluctuations, complicating assessments of network health and economic impact.

What remains unclear

While the data clearly shows significant declines in onchain activity for Ronin and ZKsync, several critical questions remain unanswered by the available sources. Neither the impact of external macroeconomic factors—such as overall crypto market conditions or regulatory changes in 2025—nor their potential contribution to these declines is addressed explicitly.

User migration patterns are also not detailed; it is unknown to what extent users may have shifted from Ronin and ZKsync to alternative Layer 2 solutions or blockchains. Additionally, granular metrics beyond transaction counts—such as active wallet numbers, retention rates, or developer activity—are not publicly disclosed, limiting deeper insights into the nature of user engagement declines.

Finally, while strategic pivots toward infrastructure improvement are documented, the extent to which these changes will influence future onchain activity remains uncertain. There is no available data or analysis on whether technical upgrades alone can stimulate renewed user growth absent viral application-driven demand.

What to watch next

Updates from Sky Mavis and Matter Labs on the progress and impact of their ecosystem diversification and protocol upgrade initiatives.
Release of more detailed user engagement metrics, including active wallets and retention rates, to assess shifts in underlying user behavior beyond transaction volume.
Comparative onchain activity data from competing Layer 2 solutions to identify potential user migration trends or ecosystem dynamics.
Regulatory developments or macroeconomic reports that could clarify external influences on blockchain activity in 2025.
Longitudinal studies or developer ecosystem health indicators that provide qualitative insight into sustainability beyond raw transaction counts.

The sharp declines in Ronin and ZKsync’s onchain activity in 2025 highlight the fragility of ecosystems reliant on viral trends and single applications for growth. While strategic pivots toward infrastructure and ecosystem diversification indicate a longer-term focus, significant uncertainties remain regarding the drivers of user engagement and the role of external factors. Monitoring forthcoming disclosures and broader market developments will be essential to understanding the trajectory of these and similar blockchain platforms.

Source: https://cointelegraph.com/news/ronin-zksync-onchain-metrics-fell-most-2025?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.