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.<\/p>\n
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.\u00a0<\/p>\n
\u00a0 Related Reading |\u00a0Bitcoin Market Cap Shed Over $120-B Last Month \u2013 How Much More Can It Lose?<\/p>\n
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\u2019s initial margin. That happens primarily in futures trading. That only tracks asset prices instead of spot trading, where traders own the actual assets.<\/p>\n
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.<\/p>\n
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.<\/p>\n
BTC\u2019s price currently fluctuates around $29,912.29\u00a0 | Source: BTC\/USD price chart from TradingView.com
\nFeasible Reasons Behind Bitcoin & Ethereum Crash<\/p>\n
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 \u201cextreme fear.\u201d<\/p>\n
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.<\/p>\n
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.<\/p>\n
DeFi Protocols On Ethereum<\/p>\n
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.<\/p>\n
\u00a0\u00a0Related Reading |\u00a0Polygon (MATIC) Price Falls Short Of Reaching Full Potential Despite Recent Developments<\/p>\n
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.<\/p>\n
\u00a0\u00a0 Featured image from Flickr and chart from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
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.<\/p>\n
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.\u00a0<\/p>\n
\u00a0 Related Reading |\u00a0Bitcoin Market Cap Shed Over $120-B Last Month \u2013 How Much More Can It Lose?<\/p>\n
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\u2019s initial margin. That happens primarily in futures trading. That only tracks asset prices instead of spot trading, where traders own the actual assets.<\/p>\n
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.<\/p>\n
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.<\/p>\n
BTC\u2019s price currently fluctuates around $29,912.29\u00a0 | Source: BTC\/USD price chart from TradingView.com
\nFeasible Reasons Behind Bitcoin & Ethereum Crash<\/p>\n
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 \u201cextreme fear.\u201d<\/p>\n
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.<\/p>\n
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.<\/p>\n
DeFi Protocols On Ethereum<\/p>\n
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.<\/p>\n
\u00a0\u00a0Related Reading |\u00a0Polygon (MATIC) Price Falls Short Of Reaching Full Potential Despite Recent Developments<\/p>\n
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.<\/p>\n
\u00a0\u00a0 Featured image from Flickr and chart from TradingView.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-731","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=731"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/731\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=731"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}