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Crypto entrepreneur and BitMEX cofounder Arthur Hayes has sold all of his holdings in HYPE and NEAR, a move that comes only weeks after publicly expressing bullish views on both cryptocurrencies.

In a post on X, Hayes revealed that he had completely exited his positions and said he would soon publish an essay titled Reality Test to explain the reasoning behind the decision.

Growing Macro Concerns Drive Caution

Hayes cited several factors that have made him more cautious about market conditions. Among them were rising energy costs linked to the conflict involving Iran, corporate inventory rebuilding, a wave of upcoming artificial intelligence related initial public offerings, and the possibility that President Donald Trump could adopt a less favorable stance toward the AI sector ahead of the U.S. midterm elections.

Taken together, these developments suggest to Hayes that financial markets could be approaching a short term peak sometime between now and September.

HYPE Falls as Market Reacts

The announcement coincided with a difficult trading session for Hyperliquid. The token was trading slightly above $65 at the time of reporting, representing a decline of roughly 10% over the previous 24 hours.

Despite the pullback, HYPE remains one of the strongest performers in the cryptocurrency market. The token has gained around 16% over the past week, making it the only asset among the ten largest cryptocurrencies by market capitalization to post a weekly increase.

Hayes’ decision attracted attention because he had recently suggested that HYPE could eventually climb to $150. The abrupt shift prompted speculation among traders about whether he had fundamentally changed his outlook or was simply securing profits after a strong rally. Such moves are not uncommon for Hayes, who has previously adjusted positions despite maintaining long term optimism on an asset.

Institutional Buyers Continue Accumulating

While Hayes was reducing exposure, other market participants were moving in the opposite direction.

Hyperliquid Strategies announced that it acquired an additional 1.4 million HYPE tokens over the past week, a purchase valued at approximately $95 million. During the same period, the firm’s cash reserves declined by roughly $15.5 million.

The company now holds around 23.7 million HYPE tokens along with approximately $141.7 million in cash.

At current market prices, Hyperliquid Strategies’ shares are trading at about 1.29 times net asset value. This premium provides the firm with the ability to issue additional at the market shares, raise capital, and potentially increase its HYPE holdings further through new purchases.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

The cryptocurrency market remains under intense pressure, with Bitcoin dropping to a new multi month low and major altcoins posting even steeper losses. The latest wave of selling has wiped out roughly $150 billion from the overall crypto market, pushing total market capitalization closer to $2.25 trillion.

Bitcoin Hits Lowest Level in Four Months

Bitcoin’s decline, which began in late May, accelerated sharply in early June. After trading above $73,000 on June 1, the leading cryptocurrency entered a sustained downtrend as sellers regained control of the market.

The asset first lost support at $70,000 before continuing its slide throughout the week. On Thursday, Bitcoin briefly fell to just above $61,000, its lowest level since the market downturn experienced in February.

Although BTC managed to recover some ground following the drop, the rebound was short lived. After climbing back toward $64,000, the cryptocurrency encountered renewed selling pressure and was unable to sustain the recovery. At the time of writing, Bitcoin remains below $63,000 and is down approximately 14% over the past seven days.

The decline has reduced Bitcoin’s market capitalization to around $1.26 trillion, while its share of the overall crypto market has fallen to 55.6%, representing a drop of more than two percentage points over the past week.

Altcoins Continue to Underperform

The broader altcoin market has fared even worse, with many leading digital assets recording significant daily losses.

Ethereum fell to around $1,750 after touching a 14 month low earlier in the day. Solana dropped below $70 following a decline of roughly 9%.

XRP briefly slipped under $1.15 before staging a modest recovery, while Cardano fell below $0.19, reaching levels not seen in years.

BNB also came under pressure, trading below $600 after losing around 7% of its value. Other major cryptocurrencies, including Dogecoin, Chainlink, Avalanche, and Zcash, remained firmly in negative territory.

One of the few bright spots in the market was Worldcoin, which recorded an impressive gain of around 11% despite the broader downturn.

Among the largest losers of the day were NEAR Protocol, Toncoin, and Render, each of which declined by as much as 18% within 24 hours.

Market Value Shrinks Further

The ongoing selloff has significantly reduced the value of the digital asset market. Over the past day alone, total cryptocurrency market capitalization has fallen by approximately $140 billion, leaving the sector valued at less than $2.27 trillion as investors continue to navigate heightened volatility and risk aversion.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

One of the most disputed prediction markets of the year has officially been settled on Polymarket. The market asked whether Strategy would sell any Bitcoin during May, and it ultimately resolved to “No.”

The decision has generated significant backlash because Strategy did, in fact, sell Bitcoin during the month. The transaction was later confirmed by company executives and disclosed in a filing submitted to the U.S. Securities and Exchange Commission.

Timing of Disclosure Determined the Outcome

The controversy centers on when the sale was publicly disclosed rather than when it actually occurred. Although the Bitcoin sale took place in May, the official SEC filing confirming the transaction was released on June 1, after the market’s May 31 deadline.

As a result, Polymarket determined that the sale did not qualify for settlement purposes, concluding that no verifiable confirmation existed before the cutoff date.

The ruling drew criticism from traders who argued that the platform effectively based the outcome on the announcement date rather than the date of the underlying event.

Debate Over Market Rules

Much of the backlash stems from a clarification reportedly added by Polymarket after trading had already closed. The added guidance stated that announcements made after the deadline would not be considered when resolving the market.

Critics argue that introducing such a clarification after participants had already placed trades changed the interpretation of the market’s rules retroactively. Some traders continued opening positions on June 1 because the market remained open on the platform despite the deadline having passed.

Adding to the confusion, similar markets created afterward reportedly did not include the same explanatory language, raising concerns that future participants could face similar uncertainty.

Event Date Versus Confirmation Date

At the heart of the dispute is a distinction between two separate questions: when the Bitcoin sale occurred and when it became publicly known.

Had the market been framed around whether Strategy would confirm a Bitcoin sale by May 31, the resolution would have been more straightforward. Instead, the market asked whether the company would sell any Bitcoin by that date.

Critics contend that the actual sale should have been the deciding factor because the event itself occurred before the deadline. Polymarket, however, treated public confirmation as the key criterion.

This distinction may appear minor, but it can produce entirely different outcomes in prediction markets. A market can resolve one way based on the timing of an event and another way based on the timing of its disclosure.

Concerns About Trust and Transparency

The dispute has fueled broader discussions about transparency and settlement standards in prediction markets. Critics argue that participants must understand resolution criteria before trading, especially when significant amounts of money are at stake.

One trader reportedly claimed losses of roughly $500,000 after betting on the “Yes” outcome. Others have questioned whether modifying or clarifying settlement standards after a market closes could undermine confidence in the platform’s neutrality.

In practical terms, Strategy’s own filings confirm that the company sold Bitcoin during May. However, under Polymarket’s interpretation and settlement rules, the market was resolved as though no sale occurred because the public confirmation arrived after the deadline.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin’s market downturn deepened over the past 24 hours, with the leading cryptocurrency falling to its lowest level in months and triggering a wave of liquidations across the digital asset market.

The sharp decline pushed Bitcoin close to the $61,000 mark, dragging most major altcoins lower and wiping out more than 270,000 leveraged traders. Total liquidations surpassed $1.6 billion, with long positions accounting for the overwhelming majority of losses.

Bitcoin Extends Multi Week Downtrend

Just a few weeks ago, Bitcoin was trading around $82,000 before entering a prolonged correction. Selling pressure intensified at the beginning of June, sending the asset down to roughly $65,000. Although Bitcoin briefly recovered to around $67,000 on Wednesday, bearish momentum returned strongly and drove prices sharply lower.

During Thursday’s trading session, Bitcoin dropped to slightly above $61,000 across major exchanges, marking its lowest level in approximately four months. The last time BTC traded near these levels was in early February, when it briefly touched $60,000 before rebounding. At the time, many analysts considered that level to be the likely bottom of the bear cycle.

However, sentiment has shifted considerably. Market observers note that sellers currently maintain firm control, with some analysts warning that Bitcoin could face another leg lower that may push prices toward or even below $55,000 if bearish conditions persist.

Altcoins Suffer Heavy Losses

The broader cryptocurrency market was unable to escape the selloff. Ethereum fell to a 14 month low, briefly dropping below $1,800 and reaching levels just above $1,700. Despite the decline, some analysts believe the correction could present a potential buying opportunity for long term investors.

Outside of Hyperliquid, which managed to outperform the broader market, most major altcoins posted significant losses. Several cryptocurrencies fell more than 5% during the day, while Toncoin recorded one of the steepest declines, dropping over 12%.

Liquidations Surge Across the Market

The extreme volatility resulted in a massive wave of forced position closures. According to market data, more than 270,000 traders were liquidated within 24 hours, with total losses reaching approximately $1.61 billion.

Long positions represented the bulk of the damage, accounting for around $1.35 billion of the liquidated value as bullish traders were caught off guard by the sharp decline.

Bitcoin recorded the largest liquidation volume by a considerable margin, with more than $735 million in long positions erased. The figure was more than double the liquidation amount recorded for Ethereum.

The single biggest liquidation event reportedly occurred on Hyperliquid, where one position worth more than $16 million was forcibly closed amid the market turmoil.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Ethereum has fallen to its lowest price level in more than a year as selling pressure continues to weigh on the broader cryptocurrency market.

According to TradingView data, ETH dropped to around $1,720 on Coinbase during early Thursday trading, marking its weakest performance since April 2025. The asset later recovered above $1,800 but remains approximately 64% below its August high.

Ethereum previously declined to nearly $1,400 in April 2025, a level that traders are now watching closely as a possible support zone if the current downturn continues.

Analysts View Decline as a Sign of Market Capitulation

Despite the sharp correction, some market observers believe the selloff may present a long term opportunity for investors.

Andri Fauzan Adziima, Research Lead at Bitrue Research Institute, described Ethereum’s return to the $1,800 range as a significant buying opportunity. He attributed the recent weakness to a risk averse market environment driven by rising bond yields, geopolitical tensions between the United States and Iran, and broader economic uncertainty, all of which have encouraged investors to seek safer investments, including artificial intelligence related stocks.

Adziima noted that Ethereum’s underlying fundamentals remain strong despite the price decline. He highlighted that roughly 32.5% of ETH’s circulating supply is currently staked, demonstrating long term investor commitment. He also pointed to decentralized finance activity, with total value locked remaining near $39 billion, along with sustained network usage and continued institutional accumulation.

According to him, the current market conditions resemble a classic capitulation phase, where weaker investors exit positions while the broader ecosystem continues to develop.

Mixed Views on Ethereum’s Future

Not all analysts share the same outlook. Crypto market platform Milk Road reported that its lead analyst recently sold the remainder of his Ethereum holdings, citing the asset’s lack of meaningful long term price appreciation.

However, another market commentator argued that the digital asset industry faces a more binary outcome. In his view, the sector will either expand into a market worth tens or even hundreds of trillions of dollars or fail entirely. He dismissed the possibility of Ethereum remaining indefinitely within its current market capitalization range.

Meanwhile, Leon Waidmann remains optimistic based on blockchain data. He pointed to a multi year low in ETH held on exchanges, record levels of staking participation, and increasing transaction activity as signs of strong investor conviction.

According to Waidmann, while market sentiment remains weak in the short term, onchain metrics suggest holders are continuing to accumulate rather than sell.

Broader Crypto Market Suffers Heavy Losses

Ethereum’s decline comes amid a broader cryptocurrency market selloff. Total crypto market capitalization has fallen by another $100 billion, pushing the sector’s value down 4% to approximately $2.3 trillion.

Bitcoin also came under pressure, dropping to an intraday low of around $61,500, close to levels last seen in early February. Several major altcoins experienced even steeper losses, including Solana, Cardano, and Stellar, as the market downturn continued to accelerate.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

A coalition of more than 160 former national security, intelligence, and law enforcement officials has urged the U.S. Senate to move forward with the CLARITY Act, arguing that the legislation would strengthen the country’s ability to combat illicit financial activity involving digital assets.

The appeal was outlined in a letter sent to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer. The effort was coordinated by Blockchain Association, which described digital asset market structure reform as a critical issue for both law enforcement and national security.

Former Officials Advocate for Stronger Crypto Oversight

According to the letter, the rapid expansion of cryptocurrency markets worldwide makes it increasingly important for the United States to establish a clear regulatory framework for the industry. The signatories warned that without effective oversight, more crypto activity could migrate to offshore jurisdictions and less transparent markets, making it more difficult for U.S. authorities to monitor transactions and investigate criminal activity.

The group stressed that digital asset activity should operate under U.S. laws and regulatory supervision, arguing that such an approach would enhance national security, improve law enforcement capabilities, and provide investigators with stronger tools to combat financial crimes. They believe the framework would make it more difficult for criminal organizations to launder funds, evade sanctions, and carry out fraud.

Addressing Rising Illicit Crypto Activity

The push for the legislation comes amid growing concerns over illegal cryptocurrency transactions. Data from the Bank Policy Institute indicated that illicit crypto flows increased by 162 percent year over year in 2024.

Supporters of the CLARITY Act maintain that the bill is not intended to reduce regulation. Instead, they say it would strengthen compliance standards, improve enforcement mechanisms, and increase accountability across digital asset markets.

The proposed legislation would expand the scope of the Bank Secrecy Act to cover digital commodity brokers, dealers, and exchanges. It would also introduce anti money laundering requirements, reporting obligations, and transaction monitoring standards.

In addition, the bill proposes a Treasury led information sharing pilot program involving agencies such as the Department of Justice, FBI, and DEA. It would also establish a permanent interagency working group focused on combating illicit finance.

Industry Engagement in Washington

The Blockchain Association said its members and other industry stakeholders will travel to Washington, D.C., for meetings with representatives across 18 Senate offices. The organization is also preparing a virtual town hall later this week to discuss the role of the CLARITY Act in supporting law enforcement and national security objectives.

Expected participants include Cynthia Lummis, Tom Emmer, and Patrick Witt.

The letter concludes by urging senators to approve the CLARITY Act. While the legislation recently cleared the Senate Banking Committee, it continues to face opposition from some lawmakers and members of the banking industry.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

The United States has imposed sanctions on Nobitex, Iran’s largest cryptocurrency exchange, along with three other Iranian digital asset platforms, as part of the Trump administration’s Economic Fury initiative designed to intensify financial pressure on Tehran.

The sanctions, announced by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), target Nobitex, Wallex, Bitpin, and Ramzinex. US authorities claim these exchanges helped users evade international sanctions, supported financial activities tied to Iran, and processed transactions linked to the Islamic Revolutionary Guard Corps (IRGC).

Concerns Over Terror Financing and Sanctions Evasion

In a statement released this week, Treasury Secretary Scott Bessent said Iran has increasingly relied on digital asset technologies to further what he described as its corrupt agenda. According to Bessent, these technologies have been used to bypass sanctions and move wealth outside the country. He emphasized that the Treasury Department will continue monitoring financial activities across both traditional banking systems and digital asset networks as part of broader efforts to prevent Iran from advancing its nuclear program.

Treasury officials stated that Nobitex handled more than half of all cryptocurrency inflows into Iran during 2025, making it a key player in the country’s digital asset sector. The agency alleges that the exchange facilitated payments connected to terrorist financing, sanctions avoidance, and transactions involving the IRGC, including operations linked to ransomware groups associated with the organization.

Authorities also claim Nobitex enabled the Central Bank of Iran to access hundreds of millions of dollars in stablecoins used to support the Iranian rial. In addition, the exchange allegedly helped regime insiders gain access to international cryptocurrency platforms across several jurisdictions.

Treasury officials further stated that Nobitex assisted in safeguarding and transferring assets abroad despite internet disruptions that occurred from the beginning of the conflict. Alongside the sanctions against the company, OFAC designated several executives and officials, including Amir Hossein Rad, the exchange’s chairman, cofounder, and former chief executive officer.

According to Treasury findings, Rad played a key role in restoring Nobitex’s operations following a $90 million cyberattack in June 2025.

The agency also sanctioned Nobitex cofounders Seyed Mohammad Ali Aghamir Mohammad Ali and Seyed Mohammad Aghamir Mohammad Ali, both members of the Kharrazi family, which Treasury described as being closely connected to Supreme Leader Mojtaba Khamenei’s inner circle. Current Nobitex CEO Seyed Ali Khoee was also included in the sanctions.

Wallex, Bitpin, and Ramzinex Also Face Sanctions

Treasury identified Wallex as Iran’s second largest cryptocurrency exchange by trading volume, stating that it received approximately 12 percent of the country’s digital asset inflows in 2025 and allegedly facilitated transactions linked to the IRGC.

Bitpin accounted for roughly 10 percent of Iranian cryptocurrency inflows during the same period and reportedly processed millions of dollars in transactions, including transfers allegedly connected to the IRGC. Treasury also noted that some of the platform’s investors have been associated with efforts to circumvent US sanctions.

Ramzinex, a Tehran based exchange established in 2018, has processed more than $2.45 billion in transactions. US authorities allege that it facilitated financial activities linked to both the IRGC and a financial institution backed by the Iranian government.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

According to Matt Hougan, the cryptocurrency market is no longer attracting the same level of excitement it once did, with investors increasingly viewing digital assets as a contrarian opportunity rather than a momentum driven trade.

In a recent market memo, Hougan argued that the current downturn reflects a broader shift in investor behavior, as capital flows away from speculative hype and toward assets with stronger fundamentals and long term utility.

AI Boom Is Drawing Attention Away From Crypto

Hougan highlighted the weak performance of major cryptocurrencies this year as evidence of fading enthusiasm across the sector. Bitcoin has declined 24%, while Ethereum, Solana, and XRP have suffered even steeper losses. At the same time, cryptocurrency exchange traded funds have experienced outflows, and spot trading activity has fallen to some of its lowest levels in years.

A major factor behind this trend, he said, is the overwhelming interest in artificial intelligence related investments. Investors have increasingly favored AI stocks, robotics firms, and private technology companies, while the technology heavy Nasdaq 100 index has posted strong gains over the past year.

As a result, crypto is no longer benefiting from the momentum driven enthusiasm that characterized previous market cycles. Instead, Hougan believes it has evolved into a sector that rewards patience, long term conviction, and careful analysis of project fundamentals.

This shift is also influencing where capital is being deployed. Investors are increasingly focusing on projects with measurable revenue and sustainable business models, such as Hyperliquid, rather than purely narrative driven opportunities.

Regulatory Uncertainty Remains a Major Obstacle

The second challenge identified by Hougan is ongoing uncertainty surrounding the proposed Clarity Act in the United States.

The legislation aims to establish a comprehensive regulatory framework for digital assets and has recently advanced through important legislative stages. However, its ultimate fate remains unclear.

According to Hougan, this uncertainty is creating hesitation among institutional investors. Faced with the choice between high growth opportunities in the artificial intelligence sector and crypto assets that still face regulatory ambiguity, many investors are choosing the former.

He suggested that large cap cryptocurrencies may struggle to sustain a meaningful rally until there is greater clarity regarding regulation. In his view, the resolution itself matters more than whether the legislation ultimately passes or fails because markets can adapt to either outcome. What continues to weigh on sentiment is the lack of certainty.

Market Rotation Signals a Different Kind of Crypto Winter

Despite the weakness in major cryptocurrencies, Hougan believes the current market environment differs from previous bear cycles.

Historically, investors tended to move capital into Bitcoin during periods of uncertainty. This time, however, money appears to be flowing into smaller digital assets that demonstrate stronger fundamentals and clearer growth prospects.

He pointed to recent gains in projects such as Hyperliquid, Zcash, and Stellar, all of which have significantly outperformed larger cryptocurrencies over the past month despite the broader market downturn.

According to Hougan, this rotation suggests investors are becoming more selective and placing greater emphasis on fundamentals rather than simply chasing momentum. He sees this as a potentially constructive sign that the market may be progressing toward the later stages of the current downturn rather than the beginning.

While he acknowledged that near term conditions could remain difficult, Hougan believes the growing focus on quality projects could indicate that the industry is gradually laying the groundwork for its next growth phase.

Analysts Remain Divided on the Outlook

Not all market observers share Hougan’s optimism.

Crypto analyst Doctor Profit has repeatedly warned that the market may face a deeper capitulation phase. He expects Bitcoin to fall below $60,000 before eventually finding a cycle bottom somewhere between $40,000 and $50,000 later in 2026.

Meanwhile, Ki Young Ju has taken an even more cautious stance, suggesting that the current bear market could potentially extend into early 2027.

The contrasting views highlight the uncertainty that continues to define the crypto market, with some analysts seeing signs of an approaching recovery while others believe additional downside remains possible.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Dogecoin (DOGE) extended its recent losses on Wednesday, falling more than 5% as broader market weakness continued to weigh on cryptocurrencies. Despite the decline, some analysts believe the meme coin may be approaching a historically significant accumulation zone that has previously preceded some of its strongest rallies.

Long Term Indicator Points to Accumulation

Market analytics firm Alphractal highlighted Dogecoin’s position within its Cumulative Value Days Destroyed (CVDD) Channel model, an on chain metric designed to estimate an asset’s structural cost basis.

The model assigns weight to coin movements based on both their value and the length of time the coins remained inactive before being moved. Historically, periods when DOGE traded near the lower boundary of the CVDD channel have coincided with major accumulation phases, while moves toward the upper Alpha CVDD band have aligned with significant market tops.

According to Alphractal, Dogecoin is currently trading close to the lower CVDD range near $0.10 to $0.11. Similar conditions emerged in late 2014, mid 2020, and mid 2023, all of which were followed by substantial price advances. Following those accumulation periods, DOGE recorded gains estimated at 25,000%, 18,000%, and 500%, respectively.

Analysts See Consolidation Rather Than Weakness

Alphractal argues that the current lack of excitement surrounding Dogecoin should not be viewed as a negative signal. Historically, major market narratives tend to develop after accumulation phases rather than before them.

The firm also pointed to Dogecoin’s prolonged sideways trading over the past year as evidence of investors steadily rebuilding the asset’s cost basis. According to the analysis, traditional trading volume metrics may not fully capture this activity because the CVDD framework focuses on value weighted holding behavior rather than transaction counts.

As a result, Alphractal believes the market is witnessing a period of quiet accumulation rather than a sign of declining interest.

Potential Upside Target Near $0.85

Using its Alpha CVDD model, which the firm says has successfully identified previous major Dogecoin cycle peaks, Alphractal estimates an upper target zone around $0.85.

If achieved, that level would represent a gain of roughly 7.7 times from current prices.

The firm emphasized that Dogecoin remains the largest and most widely distributed meme coin in the market, with a longer historical record than any other asset in its category. Based on the current setup, Alphractal believes DOGE is displaying characteristics similar to those seen near previous cycle bottoms.

While many investors have begun to view Dogecoin as a fading meme asset, the firm’s analysis suggests the chart may instead be signaling a market preparing for a significant move.

Additional Bullish Signals Emerge

Alphractal also suggested that Dogecoin could potentially triple in value before artificial intelligence themed meme coins become the dominant narrative in the sector.

Adding to the bullish outlook, crypto analyst Ali Martinez recently reported that the TD Sequential indicator generated a buy signal on Dogecoin’s chart. Several other market commentators have echoed similar views, arguing that the asset may be approaching a breakout point after an extended period of consolidation.

Although market conditions remain volatile, proponents of the bullish case believe DOGE’s current positioning resembles previous accumulation phases that ultimately led to substantial price appreciation.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Concerns briefly emerged on Wednesday after the Zcash blockchain appeared to stop producing new blocks for several hours, leading some users to speculate that the network had suffered an outage.

However, industry participants later clarified that the blockchain itself remained fully operational. The issue was traced to block explorers that failed to update correctly, creating the false impression that network activity had come to a halt.

Faulty Explorer Data Triggered Confusion

Earlier in the day, several block explorers showed no activity beyond block 3,364,603, which was recorded at 5:28 a.m. UTC. With no additional blocks appearing for more than four hours, rumors quickly spread that the Zcash network had gone offline.

Responding to the speculation, Mert Mumtaz dismissed claims of an outage and explained that the blockchain continued processing transactions normally.

According to Mumtaz, the problem stemmed from certain block explorers relying on a malfunctioning node. Because those services were receiving incorrect data, they failed to display newly produced blocks even though the chain itself remained active and healthy.

Network Upgrade Was Underway

The confusion came shortly after a coordinated protocol upgrade within the Zcash ecosystem aimed at addressing a security vulnerability involving Orchard, the network’s newest shielded transaction pool.

The upgrade process was initiated on June 1 after developers identified an issue affecting Orchard. In response, ecosystem participants, including developers, miners, infrastructure providers, exchanges, and community contributors, coordinated efforts to temporarily restrict Orchard related transactions while a fix was implemented.

The remediation took place in two phases through network consensus.

The first phase involved a soft fork that temporarily disabled Orchard functionality by blocking both the creation of new Orchard outputs and spending from existing Orchard funds. This approach helped reduce the risk of exposing sensitive technical details while developers worked on a solution.

The second phase introduced a hard fork that fully resolved the vulnerability and restored Orchard operations through updates to the network’s zero knowledge proof system.

Following the successful upgrade, Orchard transactions were reactivated.

According to the Zcash Open Development Lab, there is no evidence that the vulnerability was ever exploited. The organization stated that no unauthorized tokens were created, the total supply of ZEC remained unaffected, and user funds were never at risk. The issue was isolated to Orchard and did not impact Sapling or transparent transactions.

The vulnerability was originally identified during security reviews conducted by Zcash researcher Taylor Hornby, with remediation efforts coordinated by the Zcash Open Development Lab and the Zcash Foundation.

ZEC Continues to Outperform the Broader Market

Despite the temporary confusion surrounding the network, Zcash’s native cryptocurrency has maintained strong momentum.

ZEC has gained nearly 45% over the past month and was trading around $59.90 after adding another 4% during the latest 24 hour period.

Crypto analyst Ali Martinez recently noted that the TD Sequential indicator on ZEC’s 12 hour chart generated a bullish signal, suggesting the possibility of further upside. According to his analysis, maintaining support above the $50 level could pave the way for a move toward $64.20.

Meanwhile, blockchain analytics platform Santiment reported that ZEC has become one of the most discussed assets across crypto social media. The token recorded multiple spikes in social dominance, with its highest engagement score reaching 10.02 on May 20, highlighting growing interest from traders and investors.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic