DN drops over 80% in 24 hours; project team responds, citing liquidity issues, and is working with market makers to resolve.

DeepNode (DN) tokens plummeted over 80% within 24 hours, triggering market concerns. The project team DeepNode AI quickly responded on X platform, stating that no security issues have been confirmed, and that the sharp decline was mainly caused by insufficient liquidity depth due to market makers. They are currently working with market makers to resolve this. This is the most severe price fluctuation since DN went live less than a month ago.

Crash Data and Event Summary

According to the latest news, DN’s market performance is as follows:

DN was listed for trading on December 23, 2025, only 22 days ago. The initial performance was strong, but it experienced a significant drop on January 12. The 24-hour trading volume remains high at $18.967 billion, but the market cap has fallen to $6 million.

Core Response from the Project Team

DeepNode AI’s official statement clearly highlights two key points:

• On the technical level, no security issues have been confirmed (excluding smart contract vulnerabilities, hacking risks, etc.)
• The problem stems from liquidity depth affected by market makers (not an issue with the project itself)

This distinction is very important. Liquidity depth issues are related to market structure, not the project’s fundamentals.

The Essence of Liquidity Depth Issues

Market maker influence on liquidity depth typically manifests as:

• Wide bid-ask spreads, increasing trading costs
• Large orders causing significant price slippage
• Lack of sufficient counterparties in the market
• Market makers withdrawing or reducing quotes

Such situations are common in newly launched projects. Although DN’s 24-hour trading volume is as high as $18.967 billion, this may reflect trading activity rather than true liquidity depth. High volume can coexist with poor liquidity, especially when trading is concentrated on a few trading pairs.

Contradiction Between Ecosystem Actions and Price Performance

It is worth noting that DN has made positive moves recently:

• Staking functionality is now live, supporting both BSC and Base chains
• Integration with Superbridge to optimize cross-chain asset flow
• Distribution of Treasure Chests rewards to early contributors

These positive developments contrast with the sharp price decline. This may indicate that market confidence in new projects fluctuates significantly, and technical or ecosystem progress alone cannot offset the negative impact of liquidity issues.

Personal Opinion

Price fluctuations in new projects during early stages are often not entirely driven by fundamentals. Factors such as liquidity, market maker strategies, and market sentiment play decisive roles. DN’s situation is a typical liquidity crisis in a new project, rather than a fundamental problem with the project itself. The key is whether the project team can effectively cooperate with market makers to quickly restore liquidity depth.

Future Focus Points

Based on the current situation, the market should pay close attention to:

• Progress and timelines of cooperation with market makers
• Whether liquidity depth gradually recovers
• Any new ecosystem or funding developments
• Community confidence recovery

Summary

The 80% crash of DN is indeed shocking, but the project team’s prompt response and problem identification are relatively clear. It is not a security issue but a common market structure problem for new projects. Insufficient liquidity depth caused by market makers is the direct reason, and the key to resolving this lies in effective cooperation between the project team and market makers. Short-term market confidence may be affected, but if the project can quickly restore liquidity and with recent ecosystem progress (staking, cross-chain integration, etc.), DN is likely to stabilize gradually. Investors in new projects should understand that early-stage volatility is normal; long-term value is reflected in fundamentals and ecosystem development.