SNEAK PEEK
DeFi liquidations exceed $350 million, marking a new yearly high.
Bitcoin, Ethereum plummet, escalating market volatility significantly.
Centralized exchanges report over $1 billion in futures liquidations.
Decentralized finance (DeFi) platforms have experienced unprecedented liquidations, surpassing $350 million in the past 24 hours. This surge in liquidations coincides with a drastic downturn in major cryptocurrency prices, with Bitcoin and Ethereum leading the decline.
Data from Parsec Finance indicates that liquidations on DeFi protocols have set a new yearly record. Ethereum-based lending protocols bore the brunt of these liquidations, with Ethereum (ETH) collateral suffering the most, totaling approximately $216 million.
Wrapped staked Ethereum (wstETH) and wrapped Bitcoin (wBTC) followed with $97 million and $35 million in liquidations, respectively. This spike is primarily attributed to sharp price declines in these major digital assets, which have shaken the crypto market.
The rest of the crypto market has not been spared this volatility either. Amidst the mishap, data from CoinGlass revealed that centralized exchanges experienced more than $1 billion worth of futures liquidations during the same period. Of these, a whopping $900 million were in the long-leveraged positions. Among these, Bitcoin and Ethereum traders were most impacted, as more than half a billion dollars in long and short positions were liquidated.
The recent market selloff has driven Bitcoin to its lowest price point since February, falling below $53,000. Similarly, Ethereum reached a six-month low, dipping to around $2,300. This downturn reflects heightened market volatility and investor uncertainty.
Based on the current market trends, it appears that the environment within the cryptocurrency market is right for some transition. Peer-to-peer and centralized markets’ investors and traders are operating in conditions with significant fluctuations and possible risks, connected with leverage.
As of the time of writing, Bitcoin (BTC) is trading at $52,364.79, with a 24-hour trading volume of $84,528,161,564. This represents a 14.45% decline in price over the last 24 hours and a 25.37% decline over the past 7 days.Similarly, Ethereum (ETH) is priced at $2,281.48, with a trading volume of $58,473,864,637 in the same period. Ethereum has experienced a 21.65% drop in the last 24 hours and a 32.64% fall in the past week.
The post DeFi Platforms Witness Record Liquidations as Crypto Prices Tumble appeared first on Today NFT News.
