What Is Polyhedra Network (ZKJ)? Whale Sell-Offs, Liquidity Woes, and a 90% Drop Explained
Polyhedra Network’s native token (ZKJ) experienced a dramatic collapse in mid-June 2025, with prices plunging over 90% within a single day. What initially looked like a market correction quickly unraveled into a full-scale liquidity crisis. Triggered by sudden whale sell-offs, shallow on-chain liquidity, and amplified by Binance’s Alpha Points farming incentives, the crash wiped out hundreds of millions in value and sent shockwaves through the crypto community. In this article, we break down what Polyhedra Network is, how it works, and the sequence of events that led to this sharp decline—along with how the team and market are responding.
What Is Polyhedra Network (ZKJ)?
Polyhedra Network is a next-generation blockchain infrastructure project that focuses on interoperability and privacy through zero-knowledge proof (ZKP) technology. Its core mission is to enable secure, trustless data and asset transfers across different blockchains without compromising user privacy. The project’s native token, ZKJ, plays a central role in the ecosystem—used for transaction fees, staking, and governance participation.
At the center of Polyhedra’s offering is zkBridge, a zero-knowledge-powered cross-chain protocol that verifies transactions between blockchains without revealing sensitive details. This allows users to move assets, messages, and credentials across chains like Ethereum, BNB Chain, and more in a secure and scalable way. With additional products like ZK-DID (decentralized identity) and ZK-NFTs, Polyhedra aims to be a foundational layer for the future of Web3 applications.
How Polyhedra Network Works
Polyhedra Network leverages zkSNARKs (zero-knowledge succinct non-interactive arguments of knowledge) to enable fast, private, and verifiable transactions across multiple blockchains. These cryptographic proofs allow users to confirm that a transaction is valid without revealing the underlying data—solving a major challenge in blockchain interoperability and privacy.
The main protocol, zkBridge, works by generating cryptographic proofs on the source chain and verifying them on the destination chain. For example, when a user transfers tokens from Ethereum to another network, zkBridge generates a proof that the transaction occurred, and this proof is then validated on the receiving chain. This mechanism avoids the need for centralized relayers or trust assumptions. ZKJ tokens are used to pay for these operations, secure the network through staking, and participate in governance decisions—giving the token both utility and influence within the ecosystem.
What Triggered the Price Crash?
Polyhedra Network (ZKJ) Price
Source: CoinMarketCap
The dramatic crash of ZKJ began on June 15, 2025, when a series of unexpected and unusually large on-chain transactions disrupted the stability of the token’s key liquidity pools. In a matter of hours, the price plunged from around $2 to below $0.30, sparking panic across the market. What initially appeared to be a routine dip quickly snowballed into a severe liquidity crisis that exposed vulnerabilities in the token’s market structure.
While some observers initially pointed to a scheduled token unlock as the likely cause, deeper analysis revealed that the collapse was primarily triggered by massive liquidity withdrawals and sudden sell-offs from large holders. The problem was made worse by the intertwined dynamics of low liquidity, leveraged positions, and heavy activity in Binance’s Alpha Points program—all of which amplified the market shock. What followed was a textbook case of a cascading sell-off in a fragile DeFi ecosystem.
Whale Sell-Offs: The First Domino
The first signs of trouble came when a few large wallets —commonly referred to as whales—began pulling liquidity from Polyhedra’s trading pools and dumping substantial amounts of ZKJ into the market. One wallet, for instance, withdrew 61,130 KOGE (worth around $3.7 million) and 273,017 ZKJ (approximately $530,000) in a single transaction. Another major wallet followed, removing 33,651 KOGE (about $2 million) and 709,203 ZKJ (valued near $1.4 million). A third wallet unloaded 772,759 ZKJ, worth close to $1.5 million at the time.
These heavy withdrawals rapidly drained liquidity from the ZKJ/KOGE and KOGE/USDT pools, severely disrupting price stability. Because the market depth was already thin, these multi-million-dollar sell-offs caused outsized price swings. As token prices fell, leverage positions began getting liquidated, fueling a cascade of forced sales. In essence, the exit of a few major players was the first domino—setting off the larger market panic that followed.
Liquidity Woes in the ZKJ/KOGE Pool
Once the whale sell-offs began, the fragile structure of Polyhedra’s on-chain liquidity became painfully clear. The trouble started when the KOGE/USDT pool was completely drained, leaving holders of KOGE with no direct route to stablecoins. In response, many traders began converting KOGE into ZKJ through the KOGE/ZKJ pool, which was still active at the time. This sudden influx of KOGE sales against ZKJ flooded the pool with supply, driving ZKJ’s price down even further.
As traders scrambled to salvage value, the pressure shifted to the ZKJ/USDT pool, which also lacked sufficient depth to absorb the volume. With limited liquidity in both directions, every trade caused significant slippage. The domino effect was in full motion: KOGE was being dumped into ZKJ, and ZKJ was being dumped into USDT—overwhelming the market at every level. In just hours, this chain reaction dismantled Polyhedra’s trading infrastructure, turning what might have been a temporary dip into a full-blown collapse.
Role of Alpha Points Farming
Adding fuel to the fire was Binance’s Alpha Points program, which incentivized trading of select tokens—ZKJ and KOGE among them—by offering rewards to users based on trading volume. This led to a surge in activity and volume across the ZKJ/KOGE and KOGE/USDT pools, but much of it was artificial, driven by users farming points rather than genuine demand for the tokens themselves.
When the price started to dip, many of these Alpha Points farmers rushed to exit their positions, further stressing already shallow liquidity pools. Because the program encouraged high-frequency trades with minimal intent to hold, it created an unstable environment where large volumes could vanish instantly. In the aftermath, Binance acknowledged the issue and updated the rules: starting June 17, trades between reward-eligible tokens like ZKJ and KOGE would no longer count toward Alpha Points accumulation . But by then, the damage had already been done.
Scheduled Token Release Added Pressure to the Sell-Off
As if the market wasn’t under enough pressure, a scheduled token unlock of 15.53 million ZKJ—equal to over 5% of the circulating supply—was just days away, set for June 19. Although the unlock hadn’t happened yet, its looming presence further shook investor confidence. Traders feared that once unlocked, these tokens could be dumped into an already collapsing market, driving prices even lower.
This fear led to a wave of preemptive selling, as holders rushed to exit before the potential oversupply hit the market. Combined with the ongoing whale sell-offs and liquidity drain, the anticipation of the unlock added a new layer of urgency to the sell-off. It wasn’t the cause of the crash—but it undoubtedly intensified the panic.
How the Polyhedra Team Is Responding
In the immediate aftermath of the crash, the Polyhedra team moved quickly to address concerns and reassure the community. They acknowledged that the sharp decline was triggered by “abnormal on-chain transactions” in the ZKJ/KOGE pool and emphasized that the network’s core technology was not compromised. The team attributed the chaos to a combination of large liquidity withdrawals, aggressive sell-offs, and market manipulation tactics that overwhelmed the system’s defenses.
To stabilize the situation, Polyhedra’s co-founders announced plans to buy back tokens, aiming to restore confidence and support the token’s market value. They also promised a full post-mortem of the event and outlined intentions to improve pool protections and overall market structure. The messaging was clear: the technology remains solid, but changes are coming to prevent this type of financial attack from happening again.
Market Reaction and Community Sentiment
The crash of ZKJ sent shockwaves through the crypto community, with many comparing it to previous high-profile collapses. Social media was flooded with speculation, frustration, and post-mortem analysis. Some traders accused the project of poor liquidity planning, while others blamed the unstable trading environment. Comparisons to events like Terra’s downfall weren’t uncommon, though the causes in Polyhedra’s case were more tied to market mechanics than protocol failure.
Despite the chaos, ZKJ managed a modest rebound in the days following the crash, with prices climbing back above $0.70 as of June 17. Some community members saw this as a sign of resilience, while others remained cautious, pointing to upcoming unlocks and long-term liquidity concerns. Overall, the sentiment remains mixed—ranging from cautiously optimistic to deeply skeptical. For now, the Polyhedra crash stands as a stark reminder of how quickly things can unravel in DeFi when liquidity thins, incentives misalign, and whales make moves.
Conclusion
Polyhedra Network’s crash wasn’t the result of a single failure, but a perfect storm: coordinated whale exits, thin liquidity, incentive-driven trading, and the looming threat of a token unlock all converged at once. While the underlying technology remains solid and the team is actively responding, the event exposed serious vulnerabilities in market dynamics and tokenomics.
For investors and builders alike, the ZKJ collapse is a cautionary tale—reminding us that even promising projects can face dramatic setbacks if market conditions spiral. The coming weeks will be critical for Polyhedra’s recovery, both in terms of price action and community trust. Whether ZKJ can regain stability or remains a warning from the DeFi playbook depends on what the team does next—and how the market chooses to respond.
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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
