Ethereum's gas fees surged to 710 gwei amid a 22% price drop, causing investor panic and widespread market instability.
At $1,950, $92.2 million in DeFi assets face liquidation, escalating to $271 million if Ethereum's price hits $1,790.
Total crypto market capitalization plummeted by $300 billion in three days, with $732 million liquidated in the last 12 hours.
Ethereum's value dropped to nearly $2,100, a 22% decline, a low not seen since January 1, 2024. This sudden drop has sparked investor panic, evident as Ethereum gas fees surged dramatically.
The Max Ethereum gas fee reached an alarming 710 gwei, with the average fee currently at 350 gwei. This spike in fees is attributed to the rush of investors offloading their tokens in response to the market turmoil.
https://twitter.com/WuBlockchain/status/1820273693211394184 Ethereum Price Decline and Liquidation Risks
As Ethereum's price approached $1,950, the DeFi sector faced severe liquidation threats. Approximately $92.2 million of crypto assets in DeFi protocols stood on the brink of liquidation at this price level. The risk intensified as the price dropped further; at $1,790, the potential liquidation value surged to $271 million. Any further decline in Ethereum's price could trigger massive liquidations, and worsen the market instability.
Historical Gas Prices and Recent Spikes
The recent gas fee surge has been significant, with historical data showing a sharp increase in the Max Gas Price to 710 gwei on August 4. Before this spike, the high gas price remained relatively stable.
The average gas price over the past seven days stood at 116 gwei, with the minimum recorded at 3 gwei. The data indicates a volatile period for gas fees, correlating with the steep decline in Ethereum's price.
Market Impact and Broader Crypto Trends
The broader crypto market reflected Ethereum's decline, with major altcoins dropping between 10% and 25% compared to the previous day. In the last 12 hours alone, total liquidations reached $732 million, with longs accounting for 86.5%. The market's total capitalization has decreased by over $300 billion in just three days, reminiscent of the sell-offs during the March 2020 COVID-19 crisis.
Additionally, Jump's substantial movements in the market, converting $500 million of Lido's stETH tokens back to ETH and transferring $200 million to exchanges, have fueled speculation about their intent to reduce cryptocurrency exposure following regulatory scrutiny by the CFTC and SEC.
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The post Ethereum Crashes to Nearly $2,100, Gas Fees Hit 710 Gwei, $300 Billion Wiped from Crypto Market appeared first on Crypto News Land.
