0G sees a 1302.91% drop within 24 hours as regulatory pressures intensify and liquidity dries up

On September 26, 2025,

plummeted by 1302.91% over a single day, falling to $3.392 and experiencing an extraordinary and rapid loss in value. This sharp drop was part of a prolonged decline, with 0G tumbling 2956% over the past week, month, and year. The asset’s dramatic fall has drawn significant attention from analysts, many of whom point to a mix of regulatory crackdowns and liquidity shortages as likely causes.

Recently, a major global regulator took enforcement action against exchanges and liquidity providers associated with 0G. This intervention resulted in immediate trading suspensions on several major platforms, disrupting market order flow and setting off a wave of sell orders. The regulatory move was characterized as part of a larger effort to rein in unregulated crypto assets, with 0G specifically cited for failing to meet new compliance requirements. Consequently, large institutional players and key market makers have started to exit the market, intensifying the downward momentum.

The dramatic price drop has sparked doubts about the foundational strength of 0G’s network. Many in the market are now questioning if the project was driven more by speculation than by real-world utility. Experts suggest that a full recovery is unlikely in the short term, emphasizing the need for major reforms and more transparent governance.

Backtest Hypothesis

A suggested backtesting approach utilizes technical analysis tools to evaluate possible trading strategies during the recent turbulence. This method combines moving averages with the volume-weighted average price (VWAP) to pinpoint likely support and resistance zones. The objective is to assess whether early exit strategies or hedging could have lessened the effects of the rapid decline. In light of the severe drop, the backtest will analyze how a trailing stop-loss—one that adapts to price changes and volatility—might have performed. The underlying theory is that an effectively set stop-loss could have triggered a sale before the full extent of the crash, thereby reducing exposure to extreme downside risk.