Binance Alpha’s trading volume dropped 63.3% after the ZKJ token crash, exposing vulnerabilities in its airdrop-driven, speculative trading model.
The ZKJ crash was worsened by concentrated ownership and alleged manipulation, triggering liquidity exits and damaging investor confidence.
Policy changes, rising point thresholds, and bot crackdowns reduced user incentives, accelerating volume decline and signaling a transition phase for Alpha.
In June 2025, Binance’s Alpha platform witnessed a dramatic collapse in trading volume, plunging from a peak of $2.04 billion on June 8 to just $749 million on June 16—a staggering 63.3% drop.
This sharp decline not only reflects the cyclical nature of the crypto market but is also closely tied to recent platform events, policy changes, and shifting market sentiment.
The crash of the ZKJ token in particular marked a turning point in the accelerating downturn, while the previous surge in trading activity had been driven largely by the platform’s Alpha Points airdrop mechanism.
Source：Dune
TRADING VOLUME SURGE FUELED BY ALPHA POINTS AIRDROP
Since its launch in December 2024, Binance Alpha quickly became a go-to liquidity platform for early-stage crypto projects, thanks to its low-cost BNB Chain infrastructure and innovative incentive models.
In early 2025, the platform experienced explosive growth in trading volume, peaking at $2.04 billion on June 8. A key driver of this momentum was the Alpha Points airdrop mechanism.
The airdrop system rewarded users for trading and providing liquidity, significantly boosting market activity. Users could earn points by trading specific token pairs (such as ZKJ and KOGE) or staking assets in liquidity pools.
These points could then be used to participate in new token airdrops or be exchanged for rewards. The appeal of the system lay in its low barriers to entry and high potential returns, especially with the added lure of zero-fee promotions.
This attracted a large number of speculators and high-frequency traders.
Moreover, the 15-day validity period for points encouraged concentrated trading within a short window, further amplifying volume.
Tokens like ZKJ and KOGE became user favorites due to their high liquidity returns and bonus point incentives, at one point accounting for 87% of all trading volume on the platform.
Community data revealed that on June 8, Alpha had as many as 250,000 active users, underscoring the airdrop mechanism’s powerful influence.
However, this speculative growth model carried inherent risks, as its sustainability hinged on the stability of both the point rules and token prices.
Source：Binance
ZKJ CRASH: THE TURNING POINT FOR VOLUME DECLINE
Trading volume hit its peak on June 8 but began to wane soon after—falling to $1.32 billion by June 12 and further to $987 million by June 14.
The pivotal moment came on June 16, when the ZKJ token plummeted by 83.88%, wiping its market cap down to roughly $93.55 million. This triggered panic across the market and accelerated the decline in trading activity.
On-chain analysis showed that ZKJ’s trading volume had reached $703 million on June 14, dominating the platform. However, on June 16, three major addresses dumped over $100 million worth of tokens, draining liquidity pools almost instantly.
Polyhedra Network, the project team behind ZKJ, responded by blaming abnormal on-chain activity for the crash and promised an investigation.
Meanwhile, rumors circulated that certain whales had set up short positions on centralized exchanges while manipulating prices through Alpha’s KOGE-ZKJ pool in a complex arbitrage strategy.
ZKJ’s highly concentrated ownership—with the top ten addresses holding 80% of its circulating supply—magnified the impact of the liquidity crisis. The crash not only devastated investor confidence but also triggered a mass exit of liquidity providers.
Other related tokens like KOGE saw their trading volumes shrink simultaneously. On June 16, the AB token accounted for $343 million in volume, nearly half of the platform’s total, highlighting growing reliance on a handful of assets.
Still, overall trading volume had plummeted to just $749 million—a clear indicator of a swift market shift from speculative frenzy to corrective contraction. The ZKJ incident exposed Alpha’s vulnerability to liquidity risks tied to highly concentrated tokens.
IMPACT OF AIRDROP RULE CHANGES AND DECLINING USER PARTICIPATION
While the fallout from the ZKJ crash was still unfolding, Binance made a key policy change on June 16: starting June 17, token-to-token trades and liquidity pool balances involving Alpha tokens would no longer count toward Alpha Points.
This policy significantly dampened user incentives for high-frequency trading and liquidity mining. Prior to this, the trading volume of tokens like ZKJ and KOGE had been heavily driven by point rewards.
The rule change is likely to push funds toward other Binance activities such as Launchpool or IDOs, further worsening the drop in Alpha’s volume.
The diminishing appeal of the airdrop program was also evident in rising point thresholds. On June 9, the required points for airdrop eligibility rose to 233, significantly raising costs for small traders while delivering increasingly meager rewards.
One user shared on X that after earning just $29 worth of 88 FLY tokens for 223 points, they decided to quit the program—reflecting broader community discontent.
Additionally, Binance recently upgraded its risk control systems, targeting bots and third-party tools participating in Alpha campaigns. Though aimed at ensuring fairness, this move may have inadvertently penalized legitimate users.
As a result, the number of active users dropped from 225,894 on June 15 to 195,226 on June 16—a 13.3% decline. The combination of stricter rules, higher barriers, and reduced incentives further eroded user participation and accelerated the trading volume downturn.
FALLOUT AND FUTURE OUTLOOK
The sharp decline in trading volume has far-reaching implications for Binance Alpha’s ecosystem. First, the platform’s attractiveness may diminish.
As a liquidity gateway for early-stage projects, shrinking volume could deter new listings and affect the overall growth momentum of the BNB Chain.
Second, the ZKJ crash and its aftermath have shaken investor confidence in highly concentrated tokens, making rapid recovery difficult.
Moreover, the sustained low volume may indicate that Alpha is entering a transitional phase. While the exit of speculative capital could eventually push the platform toward a more sustainable model, in the short term, it faces the challenges of user attrition and capital flight.
Looking ahead, Binance Alpha must improve liquidity management and optimize its incentive systems to weather the current storm. Implementing mechanisms like exit caps for liquidity pools or dynamic reward adjustments could help mitigate future flash crashes.
Lowering point thresholds or extending point validity might attract more small-scale users and boost community engagement. Introducing tokens with lower concentration and stronger fundamentals could also enhance overall market resilience.
For investors, it is essential to closely monitor trading volume trends and large on-chain transactions. Using technical indicators such as RSI or Bollinger Bands could aid in developing better trading strategies.
The current challenges may ultimately catalyze Alpha’s evolution into a more mature platform. If Binance navigates this transition well, Alpha could still reclaim its position as a leader in the decentralized trading space.
CONCLUSION
The dramatic rise and fall of Binance Alpha’s trading volume reflects a volatile interplay between airdrop-driven speculation and liquidity crises.
While Alpha Points initially sparked a surge in activity, the ZKJ crash exposed the risks of token concentration and speculative overexposure. Subsequent changes in incentive structures, declining user engagement, and broader market pressure have accelerated the downtrend.
As the platform enters a reset phase, Binance must optimize its model and rebuild trust, while investors should remain cautious and adaptive. Alpha’s future hinges on its ability to turn current adversity into a stepping stone toward a more resilient and balanced ecosystem.
〈Binance Alpha Trading Volume Drops Over 60% Following ZKJ Token Crash〉這篇文章最早發佈於《CoinRank》。
