{"id":73619,"date":"2026-06-05T21:45:50","date_gmt":"2026-06-05T21:45:50","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ethereum-drags-altcoins-below-880b-as-22-weekly-slide-shakes-trader-confidence\/"},"modified":"2026-06-05T21:45:50","modified_gmt":"2026-06-05T21:45:50","slug":"ethereum-drags-altcoins-below-880b-as-22-weekly-slide-shakes-trader-confidence","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ethereum-drags-altcoins-below-880b-as-22-weekly-slide-shakes-trader-confidence\/","title":{"rendered":"Ethereum Drags Altcoins Below $880B as 22% Weekly Slide Shakes Trader Confidence"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">On June 5, ETH plunged 10% to $1,545, leading a market-wide sell-off that erased $468M in leverage.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">ZEC crashed over 40% after an AI tool found a security flaw, ceding its top privacy coin spot to Monero.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Fhenix founder Guy Zyskind expects the ZEC exploit to shift industry focus toward FHE privacy tech.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Market Bloodbath Drags <span>Altcoin<\/span> Cap Below $1 Trillion<\/h2>\n<p>The mayhem that characterized the <span>cryptocurrency<\/span> market on Friday saw several high-cap <span>altcoins<\/span> log double-digit losses, resulting in the aggregate market capitalization of <span>altcoins<\/span> dipping well below the $1 trillion mark. Ethereum ( <span>ETH<\/span>) led <span>altcoins<\/span> down after it plunged from just over $1,700 to an intraday low of $1,545, a level last seen in April 2025. The digital asset\u2019s 10% slide in 24 hours dragged its market capitalization under $200 billion.<\/p>\n<p>At the time of writing (2:45 p.m. EST), <span>ETH<\/span>\u2019s seven-day losses stood at nearly 22%, while its year-to-date gains were approaching 50%. The number two digital asset\u2019s price performance saw over $468 million in leveraged positions erased, with long bets accounting for 87%, or $408 million, of the total. <span>ETH<\/span>\u2019s slide in recent weeks left leading Ethereum treasury company Bitmine with an unrealized loss of $10.3 billion.<\/p>\n<p> <iframe src=\"https:\/\/markets.bitcoin.com\/crypto\/ethereum\/embed\" width=\"100%\" style=\"max-height:500px;height:500px;border:none;overflow:hidden;border-radius:4px\" scrolling=\"no\" title=\"ethereum market data\"><\/iframe> <\/p>\n<p>Other high-cap <span>altcoins<\/span> like <span>BNB<\/span>, <span>XRP<\/span>, and <span>SOL<\/span> also saw red, but their losses were all under 10%. This was the case with several other <span>altcoins<\/span> as well.<\/p>\n<p>However, unlike in recent days, where a few tokens appeared to<a href=\"https:\/\/news.bitcoin.com\/lab-reaches-16-23-despite-95-supply-concerns-as-short-sellers-take-heavy-losses\/\"> trend against the market<\/a>, the <span>cryptocurrency<\/span> market\u2019s June 5 sell-off saw nearly all <span>altcoins<\/span> register losses. HYPE, which tapped a new all-time high of $75.48 on June 2, tumbled 14% to $57.12. Meanwhile, LAB, which also reached a new high of $27.30 on June 2 amid a tumbling market, was down a whopping 23% in 24 hours but up 89% over seven days.<\/p>\n<p>ZEC was perhaps the biggest loser among recent high-flying tokens, tumbling from just under $540 to an intraday low of $264.80\u2014a decrease of over 40% in 24 hours. Unlike its peers, however, ZEC\u2019s slide was linked to the revelation of a vulnerability in the Orchard shielded pool, which had been present since 2022. According to security expert Taylor Hornby, the vulnerability enabled the counterfeiting of ZEC tokens.<\/p>\n<figure id=\"attachment_820553\" aria-describedby=\"caption-attachment-820553\" style=\"width:1280px\" class=\"wp-caption alignnone\"><figcaption id=\"caption-attachment-820553\" class=\"wp-caption-text\">Zcash chart:markets. <a href=\"https:\/\/www.bitcoin.com\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin.com<\/a><\/figcaption><\/figure>\n<p>Although ZODL swiftly deployed an emergency soft fork to patch the exploit, the revelation that a critical vulnerability had lurked undetected for four years\u2014only to be unearthed by AI tools\u2014sent shockwaves through the community. The news triggered a wave of market panic, prompting high-profile figures like BitMEX co-founder Arthur Hayes, long one of ZEC\u2019s most vocal cheerleaders, to <a href=\"https:\/\/news.bitcoin.com\/arthur-hayes-dumps-zec-orchard-exploit\/\">liquidate<\/a> his position.<\/p>\n<h2>The Privacy Debate: ZK-Proofs vs. FHE<\/h2>\n<p>Some observers posited that the incident demonstrates the limits of zero-knowledge (ZK) proofs that anchor the Zcash protocol. Guy Zyskind, a <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-blockchain\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">blockchain<\/a> privacy pioneer and founder of Fhenix, argues the revelation should bring into focus the benefits of alternative encryption technologies like fully homomorphic encryption (FHE).<\/p>\n<p>\u201cOne of the nice properties of FHE compared to Zcash\/ZK is that you can actually compute in the encrypted domain. This means that you could, in theory, encrypt the sum total of everyone\u2019s coin balances and ensure that it doesn\u2019t grow or inflate given some bug in the software. With ZK, you either reveal that to everyone or you hide it. Zcash chose the latter for extra privacy at the cost of users not being able to trust that the total supply remains sound,\u201d Zyskind said.<\/p>\n<p>While ZEC later rebounded to trade around $320, the coin\u2019s spectacular plunge trimmed its market capitalization from approximately $9 billion to $5.37 billion. In the process, it relinquished its position as the number one <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-privacy-coins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">privacy coin<\/a> to Monero.<\/p>\n<p>Meanwhile, at the time of writing, the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-altcoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">altcoin<\/a> market capitalization had dropped to $880 billion and appeared on course to match levels last seen in early February.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/ethereum-drags-altcoins-below-880b-as-22-weekly-slide-shakes-trader-confidence\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways On June 5, ETH plunged 10% to $1,545, leading a market-wide sell-off that erased $468M in leverage. ZEC crashed over 40% after an AI tool found a security flaw, ceding its top privacy coin spot to Monero. Fhenix founder Guy Zyskind expects the ZEC exploit to [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":73620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73619"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=73619"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/73620"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=73619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=73619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=73619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}