Ethereum Price Dives to 13-Month Low Amid ZCash Bug Fears

The Ethereum (ETH) market has experienced significant turmoil following the discovery of a critical ZCash bug using AI. The bug, which allowed unlimited ZEC minting in the largest ZCash zero-knowledge pool, has been present since 2022 without being detected.

As a result of this vulnerability, the price of ETH plummeted to a 13-month low of $1,540 on Friday. This decline was exacerbated by the bearish trend across the broader cryptocurrency market and the contraction in Ethereum TVL (Total Value Locked).

The TVL has fallen to its lowest since February 2024, negatively impacting trader sentiment. The decrease in deposits in decentralized applications (DApps) reduces ecosystem revenue and demand for ETH use in smart contracts.