$127 Million In Bitcoin And Ethereum Positions Liquidated Amid Market Drop
08 June 2022 - 7:00AM
NEWSBTC
Data shows that over the past 24 hours, more than $127 million in
Bitcoin and Ethereum futures have been liquidated. The price of
both cryptos has decreased by 6% and 7%, respectively, wiping out
the recent gain. According to Coinglass statistics, Bitcoin futures
alone lost $57.78 million, implying that most trading activity and
open interest were restricted by market capitalization to the most
prominent cryptocurrency. However, Ethereum futures suffered a $64
million loss. Related Reading | Bitcoin Market
Cap Shed Over $120-B Last Month – How Much More Can It Lose?
Liquidations occur when an exchange closes a leveraged position for
a safety mechanism. It happens because of a partial or total loss
of the trader’s initial margin. That happens primarily in futures
trading. That only tracks asset prices instead of spot trading,
where traders own the actual assets. As per CoinMarketCap
statistics, Bitcoin is currently down 5.85% on the day. It also
means that the major cryptocurrency with a market value of $563.33
billion is down 57.06% from its all-time high of $68,789.63.
Likewise, Ethereum, the second-largest cryptocurrency, is now down
64.02% from its all-time high of $4,891.70 reached in November
2021. Nevertheless, ETH is struggling to keep its recent positive
momentum going. Feasible Reasons Behind Bitcoin & Ethereum
Crash The Crypto Fear & Greed Index is a way of gauging market
activity and determining if the price of cryptocurrencies are
priced fairly. According to the Fear & Greed Index, the score
is down (15 out of 100), implying that the market is experiencing
“extreme fear.” First, there has been a decrease in Ethereum and
Bitcoin trading activity. According to data from DefiLlama, the
Total Value Locked (TVL) across multiple protocols in Ethereum has
dropped from $88.67 billion to $68.02 billion in the last 24 hours.
The flow of Bitcoin to crypto exchanges is down 37.4%, indicating
lower demand for BTC among investors, as per the data from
Chainalysis indicates. DeFi Protocols On Ethereum TVL, or Total
Value Locked, on Aave, the largest decentralized finance protocol
on Ethereum, lost 15% of its value over the past month. Other
blue-chip projects like Curve Finance, MakerDAO, Lido, and Uniswap
also lost double-digits of TVL over the same period.
Related Reading | Polygon (MATIC) Price Falls
Short Of Reaching Full Potential Despite Recent Developments
Ethereum is still the most popular blockchain for decentralized
applications (defi), with 55.59% of the total defi TVL. This is due
to the $101.32 billion worth of value locked in on the ETH chain.
Terra is second in terms of market share, with 12.86% and $23.44
billion locked in on its blockchain. Binance Smart Chain (BSC) has
6.37% of the total defi TVL, or $11.6 billion today.
Featured image from Flickr and chart from TradingView.com
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