GDAX exchange saw a flash crash of Ethereum, falling to as low as $13

The volatility of the cryptocurrency market is very intense. In the early hours of this morning, another example demonstrated this characteristic. The Ethereum token ETH on the digital currency exchange GDAX plummeted from a high of $365.79 to $13.

This cliff-like drop occurred at 20:30 UTC time. The anomaly of the GDAX exchange had a huge impact on Ethereum, the world's second largest blockchain market.

As a result, the flash crash caused the value of Ethereum on the GDAX exchange to drop by more than 96%.

This incident is very serious for Coinbase, a US digital currency company. It has currently chosen to disable the ETH/USD trading pair and suspend Ethereum withdrawals.

In addition, the slump in the price of ether also comes as the Ethereum network is struggling to cope with its growing demand for use. According to data provided by etherscan, more than 300,000 ether transactions were broadcast on the entire network on June 20, setting a record high for the Ethereum network.

It is unclear whether the price crash and network congestion will be enough to dampen investor enthusiasm, as many market observers have recently been bullish on Ethereum’s potential to overtake Bitcoin as the blockchain market leader.

As of press time, the average price of Ethereum in the global exchange market is approximately $320.