What Is the Future of Polyhedra Network (ZKJ) After the Liquidity Attack?

Liquidity attack causes 80% price drop for ZKJ token

On June 15, 2025, Polyhedra Network's ZKJ token experienced a catastrophic market crash, with its value plummeting over 80% in a matter of hours. The development team released an official statement identifying this event as a coordinated liquidity attack. According to their preliminary report, multiple wallets simultaneously withdrew significant liquidity from PancakeSwap pools and proceeded to dump large amounts of ZKJ tokens in what appeared to be a synchronized effort.

The market impact was immediate and severe, as shown by the price movement data:

On-chain analysis revealed that just three wallet addresses were responsible for withdrawing millions of dollars worth of liquidity and dumping tokens simultaneously. The team explained that thin liquidity in the PancakeSwap pool created a vulnerability that was exploited by these actors. In response to this crisis, Polyhedra Network announced a comprehensive buyback strategy designed to stabilize token prices and restore market confidence. The incident highlighted significant vulnerabilities in projects with limited trading venues and low liquidity pools, demonstrating how market structures can become fragile when concentrated in few exchanges with thin trading pairs.

Project fundamentals remain unchanged despite market trust erosion

The ZKJ token has experienced significant market volatility, with its price dropping from an all-time high of $100 in March 2024 to current levels around $0.06, representing a 94.33% decline over the past year. Despite this severe price correction, the core fundamentals of the Polyhedra Network project remain intact. The project continues to deliver on its primary mission of providing the fastest Zero-Knowledge proofs to the Web3 industry.

Market sentiment has clearly shifted, as evidenced by the volatility index indicating a "Fear" reading of 42 as of November 3, 2025. However, the technical infrastructure of zkBridge—Polyhedra's flagship product—continues to demonstrate real-world utility with over 20 million cross-chain transactions across more than 25 blockchain networks.

A comparison of market metrics versus project development shows this disconnect:

This divergence between market perception and technological progress underscores how secondary market performance can become disconnected from fundamental project development. While investors may have lost trust in the token as a store of value, the underlying technology continues to serve its intended purpose in advancing cross-chain interoperability through zero-knowledge proofs.

Long-term investors urged caution as recovery timeline uncertain

The ZKJ token's dramatic price volatility has prompted significant concern among long-term cryptocurrency investors. After experiencing an 83% price drop in June 2025 and further declining to a historical low of $0.02323 in October 2025, the recovery timeline remains highly uncertain.

Market analysis indicates a cautious approach is warranted, as ZKJ has demonstrated extreme price fluctuations within short timeframes:

Financial projections suggest ZKJ may experience a protracted recovery period. Based on analytical predictions, the token could see modest annual growth rates around 5%, potentially reaching $0.07068 by 2026 and $0.08591 by 2030. This represents a significantly slower recovery compared to its previous all-time high of $100 achieved in March 2024.

The cautious sentiment is further validated by market indicators showing a "Fear" reading of 42 on November 3, 2025. Despite Polyhedra Network's technological innovations with zkBridge facilitating over 20 million cross-chain transactions across more than 25 blockchain networks, investor confidence remains subdued. The current market capitalization of approximately $24.8 million represents just a fraction of its former valuation, reinforcing the need for prudence among those considering long-term positions in this asset.

FAQ

What is the zkj coin?

ZKJ coin is the native cryptocurrency of Polyhedra Network. It has a market cap of $340.14M and uses a Proof-of-Stake model. The coin's value fluctuates based on market demand.

What is Elon Musk's crypto coin?

Elon Musk doesn't have an official crypto coin. However, Dogecoin (DOGE) is most closely associated with him due to his frequent endorsements and support.

Why is the ZKJ coin falling?

ZKJ fell due to large withdrawals by a few wallets, causing liquidity issues. Its limited listing and low liquidity pools made it vulnerable to a 'liquidity attack'.

What is zkj?

ZKJ is a cryptocurrency powering the Polyhedra Network, a decentralized platform enhancing blockchain interoperability and scalability.