16.06.2025 06:55

The Polyhedra Network (ZKJ) token experienced a dramatic 83% price plunge, triggering widespread concerns reminiscent of previous cryptocurrency market collapses like the Terra Luna incident. This sharp decline stemmed from substantial on-chain activity, specifically large-scale withdrawals by significant holders.

The precipitating event was a series of withdrawals totaling approximately $7 million in KOGE and ZKJ tokens from Binance Alpha pools on June 15th. This initial action depleted the KOGE/USDT liquidity pool, triggering a panic selloff as traders scrambled to convert their KOGE into ZKJ. This sudden surge in demand overwhelmed the already limited liquidity in the ZKJ market, resulting in a breathtaking 60% price drop within a mere 90 minutes. Binance subsequently acknowledged the significant price volatility affecting both ZKJ and KOGE, attributing the situation to large holders removing on-chain liquidity and a subsequent liquidation cascade.

The vulnerability of the ZKJ market was further highlighted by its high turnover ratio of 18.40, indicating a thinly traded market susceptible to extreme price swings. This lack of liquidity depth significantly amplified the impact of the whale withdrawals, accelerating the price collapse. Despite reassurances from the Polyhedra team, shared via X (formerly Twitter), investors remain apprehensive, drawing parallels to other failed projects and raising serious doubts about the long-term viability of the Polyhedra Network. Currently, ZKJ trades at $0.3328, with a significant 45% reduction in trading volume to $1.8 billion according to data from internet sources.