Connect with us

Blockchain

$24 million lost in second-largest day of DeFi liquidations

The Feb. 22 crypto market flash-crash liquidated more than $24 million worth of DeFi loans. with Compound users representing more than half of the margin calls.

Avatar

Published

on

The Feb. 22 crypto crash has sparked the second-largest volume of DeFi liquidations in the sector’s history, with more than $24.1 million worth of loans being forcefully closed within 24 hours.

According to crypto data aggregator DeBank, $13.7 million, or nearly 60% of the losses occurred on Compound, followed by Aave with $5.4 million worth of liquidations.

Yesterday’s liquidations were the second-largest to hit DeFi, trailing behind the $93 million in margin calls that were triggered by a sudden increase in the price of DAI on Nov. 26. 2020. The incident saw DAI spike by 30% on Coinbase Pro — the source of Compound’s price oracle — liquidating more than $88 million worth of crypto loan collateral on the protocol.

DeBank also reported a decline in total value locked from $44.5 billion to $38.8 billion over the past 24 hours. The 12.8% decline marks the largest single daily drop since the DeFi markets shed 15.4% on Jan. 21.

The liquidations may have been exacerbated by the recent extreme gas fees associated with using the Ethereum mainnet, with traders being quoted up to $30 for simple token transfers.

With crypto users racing to outbid each other and ensure their transactions were met, network congestion amid rapidly tumbling prices may have prevented some traders from closing out their positions in time.

The flash-crash has had a devastating impact on margin traders as well as DeFi users, with Kraken users have also demanding compensation for mass liquidations caused by an accelerated crash that saw ETH drop to $700 on Kraken while the asset was changing hands for roughly $1,400 on other exchanges.

Major corporations that have invested heavily in Bitcoin also saw multi-million draw-downs amid Feb. 22’s price action that saw $9,000 wiped off the price of BTC over just a few hours.

Tesla, which purchased $1.5 billion on Feb. 8, would have lost over $200 million in the crash while MicroStrategy, which holds the most Bitcoin of any public company, would have been down over $330 million at the time of the dip.

At the time of writing, however, Bitcoin had recovered to trade at $50,800 to hover at a daily price decline of around 9%.

Source: https://cointelegraph.com/news/24-million-lost-in-second-largest-day-of-defi-liquidations

Blockchain

New Crypto Rules in Thailand Could Require Traders to Show Income Before Opening Trading Accounts

New Crypto Rules in Thailand Could Require Traders to Show Income Before Opening Trading AccountsThailand seeks to introduce a new set of rules for retail crypto investors, specifically targeting those who want to open accounts. The Thai financial watchdog could require domestic crypto exchanges to ask traders for proof of income. Thai SEC Could Also Ask Crypto Investors to Prove Their Knowledge of the Market According to a Bloomberg […]

Avatar

Published

on

Thailand seeks to introduce a new set of rules for retail crypto investors, specifically targeting those who want to open accounts. The Thai financial watchdog could require domestic crypto exchanges to ask traders for proof of income.

Thai SEC Could Also Ask Crypto Investors to Prove Their Knowledge of the Market

According to a Bloomberg report, the Securities and Exchange Commission (SEC) of Thailand is likely preparing the ground to require investors to show their income or assets before opening accounts.

Ruenvadee Suwanmongkol, the secretary general of the country’s financial watchdog, pointed out that anyone who isn’t allowed to trade cryptocurrencies via their accounts can invest through licensed managers. She added:

It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers. We realize those people love innovations and technology, but investments in these assets have enormous risk.

Moreover, the general secretary said that non-qualified crypto traders could invest via financial advisers only if they’re licensed by the SEC.

The watchdog is set to unveil its new rules on crypto trading over the week, ahead of a public hearing scheduled for March. Officials involved in the meetings are expected to evaluate recommendations from local exchanges and brokerages.

Although it’s not confirmed, the general secretary suggested that investors have to prove some knowledge of the market before being allowed to open crypto accounts for trading.

Six Licensed Crypto Exchanges Operating in Thailand so far

The rhetoric from the Thai SEC is now shifting to a cautious one towards the cryptocurrencies’ risks. However, they keep granting licenses to crypto businesses in the nation. So far, in terms of digital asset exchanges approved, there are only six operating legally in Thailand.

They are Bitkub, BX, Satang Pro, Huobi Thailand, ERX, and Zipmex. All six licensed crypto exchanges are approved for both cryptocurrencies and digital tokens, except for ERX, which is only approved for the latter.

The SEC distinguishes cryptocurrencies as “created for the purpose of being a medium of exchange for the acquisition of goods, services, or other rights.”

On the other hand, digital tokens are created “for the purpose of specifying the right of a person to participate in an investment in any project or business, or to acquire specific goods, services, or other rights under an agreement between the issuer and the holder,” said the financial watchdog.

What do you think about the words from the Thai SEC general secretary? Let us know in the comments section below.

Tags in this story

Image Credits: Shutterstock, Pixabay, Wiki Commons

Source: https://news.bitcoin.com/new-crypto-rules-in-thailand-could-require-traders-to-show-income-before-opening-trading-accounts/

Continue Reading

Blockchain

DEX volumes have already surpassed $120b in 2021

DEX trading volumes on Ethereum hit $63 billion in January, smashing the sector’s previous record of $28 billion.

Avatar

Published

on

Ethereum-powered decentralized exchanges, or DEXes, continue to surge despite high transaction fees — with DEXes processing more than $120 billion in 2021 so far.

According to Ethereum market analytics platform Dune Analytics, combined DEX volumes posted a new record of $63 billion in January. February’s volume currently sits at $59 billion and is on track to hit $67 billion at the month’s end.

DEXes have already processed more volume in the first two months of 2021 than during all previous years combined.

Monthly DEX volume: DuneAnalytics

The Ethereum-powered DEX sector is still dominated by Uniswap and Sushiswap, who account for 65% of February’s trade combined. Uniswap currently represents more than double Sushi’s volume, controlling almost 50% of DEX market share.

However, looking at the weekly number of active traders on each platform shows that Uniswap represents more than three-quarters of Ethereum DEX users. Over the last seven days, nearly 142,000 unique wallets traded on Uniswap, followed by decentralized exchange aggregator 1inch with roughly 18,450 traders, and SushiSwap with 8,911.

However, not all DEX trading activity is occurring on Etheruem, with Binance Chain’s Pancake Swap surging to report a daily trading volume behind of more than $1.1 billion.

Despite some users migrating away from Ethereum-based DEXes, confidence in the sector as a whole is at an all-time high, with the total value locked in these exchanges sitting above $40 billion for the first time during recent weeks.

Source: https://cointelegraph.com/news/dex-volumes-have-already-surpassed-120b-in-2021

Continue Reading

Blockchain

Ethereum on track to settle $1.6 trillion this quarter

Ethereum’s quarterly settlement value is on course to increase by 1,280% year-over-year.

Avatar

Published

on

Ethereum usage is surging this year, with the value of transactions settled on the network skyrocketing during 2021.

According to research from Messari, Ethereum has settled $926 trillion worth of transactions this quarter so far — 700% more than it processed during Q1 2020. 

The network is currently on-pace to settle $1.6 trillion in transactions for the first quarter of this year. In the last 12 months, Ethereum has already settled $2.1 trillion in transactions.

If Messari’s $1.6 trillion forecast is accurate, Ethereum’s quarterly settlement value will have increased 1,280% compared to Q1 2020, and more than 5,000% compared to Q1 2019. 

Messari researcher Ryan Watkins noted the data counters the prevailing narrative that Ethereum is seeing an exodus of users amid its high gas fees, exclaiming:

“Incredible scale for a technology that critics claimed couldn’t scale.”

Ethereum’s recent surge in settlement value can be attributed to explosive growth in the DeFi and non-fungible token sector — most of which is based upon Ethereum.

The massive demand on the network has caused gas prices to surge to all-time highs. With many retail traders increasingly getting priced out of using the Ethereum mainnet for smaller transactions.

Average Ethereum transaction fees spiked to record highs of $40 on Feb. 23, with Ethereum generating $50 million worth of transaction fees in a single day.

Cryptofees.info is currently reporting an average daily fee generation of $32 million for ETH over the past seven days. Comparatively, Bitcoin has generated just $8 million daily on average over the past week.

According to Bitinfocharts.com, average transaction fees surged to a record high of almost $40 on Feb. 23. At the time of writing, Ethereum’s fees have retreated to $21 on average.

On Feb. 24, Cointelegraph reported that a fat-fingered DeFi user mistakenly paid more than 25 Ether worth $36,000 for a transaction this week.

Amid the high fees, Crypto influencers are urging an accelerated launch of ETH 2.0 to alleviate pressure on the congested proof-of-work blockchain.

Source: https://cointelegraph.com/news/ethereum-on-track-to-settle-1-6-trillion-this-quarter

Continue Reading
Blockchain5 days ago

Forum Blockchain Life 2021

Blockchain5 days ago

MicroStrategy Prepares for $1 Billion Bitcoin Buy After Debt Issue

Blockchain5 days ago

Voting evolved: Blockchain tech outshines paper ballots and e-voting

Blockchain5 days ago

Brave Browser Leaking User Search History from Tor Browser

Blockchain5 days ago

BNB Beats BTC In Buying Frenzy As Its Price Surged 100% WTD

Blockchain3 days ago

Russian Man Turns Video of Him Eating Live Bat Into NFT

Blockchain5 days ago

Ethereum (ETH) Skyrockets above $2,000 for the First Time Ever

Blockchain5 days ago

Fed’s Eric Rosengren expects Bitcoin to come under pressure

Blockchain5 days ago

K-Pop Fans Become The Latest Target Of A Worldwide Crypto Scam

Blockchain5 days ago

Tesla’s CEO Changes His Twitter Avatar To BTC, The Coin Surges To $56K

Blockchain5 days ago

Bitcoin hits $1 trillion market cap as the price surges above $55,500.

Blockchain5 days ago

Ethereum Crosses $2,000, Setting a New All-Time High

Blockchain5 days ago

Join the Most Awaited ICO of the Year and Get your Ticket to the Crypto World

Blockchain5 days ago

Canada’s CI Financial Files for a New Bitcoin ETF

Blockchain5 days ago

OKCoin Removes Bitcoin SV, Bitcoin Cash to Avoid Confusing New BTC Clients

Blockchain5 days ago

XRP Not a Top-5 Crypto by Market Cap; Falls to ADA and DOT

Blockchain5 days ago

Bitcoin Reaches $56,000, $60K Soon? (Feb. 20, 2021)

Blockchain5 days ago

A Popular Analyst Predicts Polkadot (DOT) Price to Hit $300 Very Soon!

Blockchain5 days ago

Here’s How To Find New Generation of 100x Altcoins, According to Crypto Trader Elliot Wainman

Blockchain5 days ago

$1 Trillion Market Cap Recorded: BTC Hits New Milestone

Blockchain5 days ago

Ethereum (ETH) Breaks Above $2,000 For The First Time In History

Blockchain5 days ago

Binance Coin Climbs Above Tether For Third-Ranked Cryptocurrency

Blockchain5 days ago

Nvidia Announces Crypto Mining Cards to Improve Gaming Card Supply

Blockchain3 days ago

DeFi Deep Dive: Yield Farm Pioneer Compound Finance

Blockchain5 days ago

Troubled NZ Crypto Exchange Cryptopia Suffers Another Hack in the Midst of Liquidation Process

Blockchain5 days ago

Elon Musk says the price of Bitcoin and Ethereum “seem high.”

Blockchain2 days ago

Federal Reserve of Richmond Hires Self-Described ‘Crypto Nerd’

Blockchain5 days ago

MicroStrategy Doubles Down On Bitcoin, What You Need To Know

Blockchain5 days ago

How Are Investments in the CyberCash Advantageous and Disadvantageous

Blockchain5 days ago

Bahamas launches the first-ever CBDC-linked debit card.

Trending