zkVerify $VFY Faces Sharp Decline After Market Debut

zkVerify $VFY dropped 45.4% in the past 24 hours, a steep move that contrasted with the broader crypto market’s mild decline of 0.87%. The token’s sharp slide came immediately after its launch, with early activity showing strong selling pressure as initial participants likely rotated out of positions following the first wave of trading. Heavy volumes suggest active turnover, but sellers clearly outweighed buyers through the session.

Part of the drawdown stems from concerns around valuation. At a fully diluted valuation of $3 billion, many market participants questioned whether the project’s fundamentals matched its pricing. While zkVerify reported more than 5 million testnet proofs and over 40,000 users prior to mainnet, adoption metrics are still at an early stage. This mismatch between valuation and traction left the asset vulnerable once speculative demand cooled.

Broader sentiment also worked against VFY. With the Fear and Greed Index sitting at 43, traders leaned risk-off, and altcoins without strong revenue or usage cases saw sharper declines. Some participants are still locking up their BTC on Bitget PoolX despite the price action, waiting for better movement, showing that not all capital has exited the sidelines even in a weaker tape. In this environment, high beta assets like VFY tend to amplify moves, leaving the token more exposed to downside swings.

Looking ahead, the key factor will be whether zkVerify can back up its claims of 90% cost reductions in proof verification with visible revenue and usage on mainnet. Sustained growth in daily verification activity and clearer alignment between valuation and adoption could be important signals for whether the market begins to stabilize around the project’s long-term potential.