Once a market centerpiece, Binance Alpha is now witnessing a sharp decline in both users and trading volume.
Here is how the flash crash of ZKJ and KOGE significantly hindered the interesting growth of this platform.
Binance Alpha Sees Drop in Trading Volume
Data from Dune reveals that active Binance Alpha users plummeted from 233,000 on June 12 to 195,000 by June 15, equating to a loss of nearly 40,000 users in just three days. Notably, active trading users have dwindled to around 55,000, signaling an almost unstoppable decline in morale and trust.
The root cause stems from the unexpected flash crash of two key tokens, ZKJ and KOGE. The primary trigger lies with whale wallets, which massively withdrew liquidity, sparking a widespread sell-off effect, with the pool structure unable to withstand accumulated dump orders.
Following this collapse, Binance Alpha’s trading volume, previously peaking at $2.04 billion on June 8, plunged by 63% to approximately $749 million just days later.
Immediately after the sharp token price drops, Binance announced a new policy aimed at curbing “fake volume” tactics that provide no real market value. However, the community deemed this response “too late.”
Some users have urged Binance to refund lost points or rewards, emphasizing that the lack of transparency during policy adjustments caused significant financial and trust-related damage.
What Should Binance Alpha Do Next?
Recent events exposed major flaws in the Alpha system: its airdrop-based model fosters short-term sentiment, leading to concentrated volume in easily manipulated tokens.
AB token now accounts for more than 63% of the trading volume on Binance Alpha in a day. Previously, ZKJ & KOGE also held the top position. When large wallets withdrew, the system immediately collapsed.
“There is no particularly good target. Even if the wear is low, there is still a risk of price fluctuations,” an analyst on X commented.
To rebuild and recover, Binance may need to establish a transparent point allocation mechanism to discourage artificial volume, reduce reliance on centralized tokens, and prioritize projects with strong liquidity and distribution.
It also needs to implement anti-bot technology to control abnormal trading activity and enhance policy adjustment transparency, ensuring the community is informed early and has a chance to provide feedback to maintain trust.
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