Ethereum “Celebrates” 71,834 ETH Single Liquidation Record
According to on-chain and market tracker Dune Analytics, Ethereum recently set a record during the cryptocurrency market’s big sell-off. The bad news is that it is not the kind of record you want to have in your trading or investing history.
At 7:39 p.m. UTC, an address ending in “c2B3c” witnessed the single largest liquidation in the platform’s history, losing almost 71,800 ETH collateral holdings on liquidity at about $927. The record was set as a result of the significant drop in the value of the cryptocurrency market’s second-largest asset.
Most likely, the investors did not have enough funding to lower the liquidation price and were forced to deal with the unpleasant consequences of undercollateralization, which became a problem for the majority of market participants, including institutional investors like Celsius and Three Arrows Capital.
The price performance of Ethereum takes out significant players.
One of the most unexpected market swings was Ethereum’s drop below $900, which was previously thought to be impossible, especially when Ethereum was trading at around $5,000.
A cascade of liquidations occurred on both the derivatives and credit markets, resulting in such a large decrease. As more huge positions are liquidated, more traders and investors are closing their positions and selling their Ether at market value, driving the asset’s price even lower.
Unfortunately, no data indicate any type of inflows, which is not surprising given that ETH is still one of the poorest performing assets on both the financial and cryptocurrency markets, having lost more than 40% of its value since June 10.
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