Zero Network, an Ethereum Layer 2 built around gas-free transactions, is shutting down after about a year and a half in operation. The rollup launched in late 2024 as an EVM-compatible chain where users could trade and move assets without paying gas directly in ETH.
Zerion, the wallet company behind the network, announced that it will close Zero Network so the team can focus on its core wallet and API products. In its statement, Zerion said it is “gradually winding down Zero Network” and stressed that “user assets remain safe during the wind-down process.”
As part of the shutdown, Zero Network has already disabled new deposits into the Layer 2. Zerion is asking users to bridge all ETH, tokens, and NFTs off the ZERϴ Network by late July, using the same bridge paths they used to enter.
The team notes that users should withdraw assets back to Ethereum mainnet or other supported chains “as soon as possible” to avoid last-minute congestion. They add that current transfer tools let users move assets out through Zerion’s bridge and partner bridges, even though new inflows to ZERϴ are now blocked.
Market Pressure on Smaller Ethereum Layer 2s
Zero’s shutdown comes as smaller Ethereum Layer 2 projects struggle in a crowded rollup market. Larger ecosystems such as Optimism, Arbitrum, Base, and zkSync now capture most developer attention and liquidity, which leaves less room for niche networks centered on single apps.
This move also follows a similar decision by Syndicate Labs, an a16z-backed rollup infrastructure firm that announced plans to wind down amid what it called a “fundamentally changed” rollup market. Syndicate Labs said shrinking demand for custom rollups and rising security costs made its business “no longer sustainable,” highlighting the pressure on smaller L2 players.
Zerion is calling the closing of Zero Network a strategic move, not a response to a hack. Now the company says it will focus on its multichain wallet and developer APIs that already link to the biggest Layer 1s and Layer 2s without running its own rollup.
By stepping back from operating an L2, Zerion avoids the ongoing cost of managing infrastructure in a market that is consolidating around a few large players. For users, the shutdown means one less gas-free Ethereum Layer 2, but most can still reach similar apps on other networks, provided they bridge assets off ZERϴ Network before the withdrawal deadline.
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