Flow (FLOW) – Why the token is falling against the market trend

While Bitcoin approaches the $95,750 mark and the overall cryptocurrency market gains 2.3 percent, Flow (FLOW) moves in the opposite direction. The token has lost over ten percent in value in the last 24 hours—a development closely linked to the network’s security incident.

Market Context: Top Coins in the Green

The broader crypto market currently shows resilience. Bitcoin breaks through the $95,000 level again, while Ethereum trades above $3,300. The ten largest cryptocurrencies are all recording gains. But Flow remains an exception. With a nearly 14 percent drop in 24 hours, FLOW is among the biggest daily losers on CoinGecko—a paradox amid a positive market rally.

The Shock Scenario: December Exploit and Its Consequences

The massive price drop can be traced back to a specific event. On December 27, the Flow network was targeted by a security incident. An attacker exploited a vulnerability in the execution layer and stole around $3.9 million from the network. In a single day, the FLOW price collapsed by more than 50 percent, hitting a new all-time low of $0.079.

The impact was significant: major South Korean trading platforms temporarily suspended deposits and withdrawals for FLOW. The market reacted with panic selling due to the security breach.

Flow Foundation Launches Ambitious Recovery Plan

The foundation acted quickly. It contained the attack and prevented further losses. Initially, a rollback of the blockchain to the state before the exploit was discussed—a drastic step that would have reversed normal transactions.

After feedback from validators and developers, the foundation decided on a different approach. Instead of chain reorganization, a nuanced recovery model was established:

• Cadence Environment: The standard programming environment is being normalized
• Affected Accounts: Only the wallets “poisoned” by the exploit are temporarily locked
• EVM Compatibility: The Ethereum Virtual Machine initially runs in read-only mode
• Majority Unaffected: Over 99.9 percent of all accounts are unaffected and will be operational again immediately

Repair Phase Underway – Trust Issue Remains

The Flow Network Recovery Plan is in full swing. Phase one has already begun with the normalization of the Cadence environment. Validators accepted the software upgrade. Technically, the network is working on a clean recovery, without destroying legitimate user activities.

But despite these technical advances, it remains uncertain whether market confidence will return. The current FLOW price of $0.10 suggests investors are waiting. Whether the network recovery model is sufficient to regain buyers depends heavily on how transparently the foundation communicates the next phases and how quickly normal transactions become fully active again.