The data shows that more than $127 Million in Ethereum and Bitcoin futures were liquidated over the last 24hrs. Both cryptos have lost their recent gains by decreasing prices of 6% and 77% respectively.
According toStatistical information about coinglassBitcoin futures suffered a loss of $57.78million. This means that open interest and trading were severely restricted because Bitcoin is the most popular cryptocurrency. Ethereum futures, however, suffered a loss of $64 millions.
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When an exchange closes leveraged positions to provide a safety mechanism, it is called a liquidation. It happens because of a partial or total loss of the trader’s initial margin. It is common with futures trading. It tracks only asset prices, not spot trading. Traders own actual assets.
As per Statisticians at CoinMarketCapBitcoin’s current price is 5.85%. This means that Bitcoin, a major cryptocurrency having a market capitalization of $563.33 trillion is currently down 57.06% from $68,789.63.
Ethereum, second largest cryptocurrency after Bitcoin, has fallen 64.02% since November 2021, when it reached its record high of $4891.70. ETH has struggled to maintain its positive momentum.
Feasible Reasons Behind Bitcoin & Ethereum Crash
It Crypto Fear & Greed IndexThis index is used to gauge market activity and determine if cryptocurrencies’ prices are fair. According to the Fear & Greed Index, the score is down (15 out of 100), implying that the market is experiencing “extreme fear.”
The first is a decline in Bitcoin and Ethereum trading activity. Source: DefiLlamaThe Total Value Locked in Ethereum across all protocols has decreased from $88.67 Billion to $68.02 Billion in 24 hours.
According to the data, 37.4% of Bitcoin is flowing to crypto-exchanges, which indicates lower demand from investors for BTC. Chainalysis indicates.
DeFi Protocols for Ethereum
TVL (or Total Value Locked) on Aave was down 15% over the last month. Aave is the biggest decentralized financial protocol on Ethereum. Other blue-chips like Curve Finance (or Total Value Locked), MakerDAO and Lido also saw double-digit losses in TVL during the same period.
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Ethereum, which accounts for 55.59% in total defi TVL, is the most widely used decentralized application blockchain. It is because of the $101.32 trillion worth value secured on the ETH network. Terra comes in second place in terms market share with 12.86% of the total defi TVL and $23.44 Billion locked in its blockchain. Binance Smart Chain has 6.37%, or $11.6 million today, of total defi TVL.
Featured image from Flickr and chart from TradingView.com