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Impact on on-chain liquidations in DeFi protocols
The post Impact on on-chain liquidations in DeFi protocols appeared on BitcoinEthereumNews.com. In recent times, the cryptocurrency market has shown extreme volatility, culminating in the last 24 hours with on-chain liquidations on protocolli DeFi that have exceeded 350 million dollars. According to the data provided by Parsec, this significant increase in liquidations was largely caused by a general selloff in the cryptocurrency market, with Bitcoin falling below $51,000 and Ethereum touching $2,200. At the same time, centralized exchanges recorded futures liquidations exceeding 1 billion dollars in the same time frame. Impact on on-chain liquidations in DeFi protocols The recent selloff in the cryptocurrency market has several causes. One of the main ones is the growing global economic uncertainty, which has pushed many investors to reduce their exposure to risky assets like cryptocurrencies. Additionally, technical factors have contributed to this wave of sales, including overbought signals and the reaching of critical resistance levels for Bitcoin and Ether. Another relevant factor has been the announcement of new regulations and control measures by various governments, which have generated concerns among investors. For example, the introduction of stricter rules for the control of cryptocurrency transactions and the obligation for greater transparency have increased nervousness in the market. On-chain liquidations in DeFi protocols are a crucial indicator of the health of the cryptocurrency market. When cryptocurrency prices drop drastically, many users of DeFi protocols, who have borrowed funds using their cryptocurrencies as collateral, find themselves in trouble. If the value of their collateral falls below a certain threshold, their loans are automatically liquidated to cover the debt. In the last 24 hours, this dynamic has led to massive liquidations. The Parsec platform has recorded over 350 million dollars in on-chain liquidations, with the most affected DeFi protocols including Aave, Compound, and MakerDAO. These liquidations have generated additional selling pressure, further contributing to the decline in cryptocurrency prices.…
The post Impact on on-chain liquidations in DeFi protocols appeared on BitcoinEthereumNews.com.
In recent times, the cryptocurrency market has shown extreme volatility, culminating in the last 24 hours with on-chain liquidations on protocolli DeFi that have exceeded 350 million dollars. According to the data provided by Parsec, this significant increase in liquidations was largely caused by a general selloff in the cryptocurrency market, with Bitcoin falling below $51,000 and Ethereum touching $2,200. At the same time, centralized exchanges recorded futures liquidations exceeding 1 billion dollars in the same time frame. Impact on on-chain liquidations in DeFi protocols The recent selloff in the cryptocurrency market has several causes. One of the main ones is the growing global economic uncertainty, which has pushed many investors to reduce their exposure to risky assets like cryptocurrencies. Additionally, technical factors have contributed to this wave of sales, including overbought signals and the reaching of critical resistance levels for Bitcoin and Ether. Another relevant factor has been the announcement of new regulations and control measures by various governments, which have generated concerns among investors. For example, the introduction of stricter rules for the control of cryptocurrency transactions and the obligation for greater transparency have increased nervousness in the market. On-chain liquidations in DeFi protocols are a crucial indicator of the health of the cryptocurrency market. When cryptocurrency prices drop drastically, many users of DeFi protocols, who have borrowed funds using their cryptocurrencies as collateral, find themselves in trouble. If the value of their collateral falls below a certain threshold, their loans are automatically liquidated to cover the debt. In the last 24 hours, this dynamic has led to massive liquidations. The Parsec platform has recorded over 350 million dollars in on-chain liquidations, with the most affected DeFi protocols including Aave, Compound, and MakerDAO. These liquidations have generated additional selling pressure, further contributing to the decline in cryptocurrency prices.…
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