The post DeFi Liquidations Hit New Annual High Amid Crypto Market Sell-Off appeared on BitcoinEthereumNews.com.

Bitcoin fell below $50,000 earlier today, its lowest valuation since February. Aave and two other lending protocols were hit hard by these liquidations. According to statistics from analytics company Parsec financial, on-chain liquidations across Ethereum’s decentralized finance protocols hit a new annual high, with positions liquidated totaling over $350 million in the preceding 24 hours. This is happening as the market volatility has spiked and the crypto market as a whole has been selling down. Bitcoin fell below $50,000 earlier today, its lowest valuation since February, while ether reached a six-month low of about $2,300. Substantial Impact Aave and two other lending protocols were hit hard by the concentration of these liquidations in three key assets. Over the previous day, liquidations totaling $216 million hit ETH collateral the hardest. Liquidations of $97 million were seen in wrapped staked ETH (wstETH), whereas $35 million was seen in wrapped bitcoin (wBTC). Moreover, founder Stani Kulechov of Aave said that the decentralized lending platform made $6 million in liquidations fees at the peak of liquidations. A number of causes, including rapid declines in market prices, might explain the recent uptick in liquidations. At the same time, data from CoinGlass shows that centralized exchanges have seen futures liquidations exceeding $1 billion in the last day. According to Coinglass statistics, around $900 million of these investments were long leveraged. The liquidations that affected traders in Ethereum and Bitcoin alone were worth over half a billion dollars. Global market asset classes have been collapsing, and JPMorgan, a banking behemoth, has predicted that a buy-the-dip opportunity is imminent. Following a decline below $50,000, the price of Bitcoin has swiftly recovered and is again trading over $54,000, causing a few brief liquidations in the last hour. Highlighted Crypto News Today: Why Does The Indian Community Feel Neglected by…

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Filed under: News - @ August 6, 2024 7:26 am