Ethereum experiences worst trading day and returns to December level
Ethereum crashed alongside all cryptos and this fix seems to be the worst tag performance in history. Aside from a few trading anomalies where the ETH rate fell almost to zero, this correction came quickly and wiped out most of ETH's profits.
Ethereum returns to course level in December
Beginning 2020 was Ethereum one of the best altcoins. The recent crash, however, wiped out this optimism after traders got out in droves and caused enormous network congestion.
Not to be outdone, it's Ethereum's worst ever day as a financial asset, by a significant margin (- 43% with the runner up being – 27%). pic.twitter.com/OS2Urcq2Jc
– nic carter (@nic__carter) March 13, 2020
The crash deleted more than last week 45 Percent of the Ethereum price. But Ethereum's slide also affected the entire crypto ecosystem and resulted in the liquidation of DeFi-secured credit programs. The liquidations were exacerbated by a double commitment to rapidly falling Ethereum market prices and a heavily congested network.
I say it reluctantly but the real problem yesterday was @ethereum, the congested network and the skyrocketing fees blocked all the decentralized mechanisms of the #DeFi. We are still far from having a solution that can be used effectively on a large scale.
– Simone Conti | simoneconti.eth (@simoneconti_) March 13, 2020
The DeFI market suffered heavily
The sell-off did not completely crash the secured loan sector, even though it shocked the market. Maker (MKR) dropped overnight by more than 39% on $ 259, 58.
The peculiarities of the DAI trading center also allowed exploitation by a knowledgeable dealer, since the price crash led to zero-price auctions that were won by a quick participant.
Holy crap is this real? All the DAI vaults got liquidated and no one bid on the auction so someone walked away with literally millions of dollars worth of ETH after bidding $ 0 for the liquidated vaults? DumpstEr FIre #defi
– Richard Holland (@codetsunami) March 13, 2020
The so-called collateral vaults were liquidated and taken over according to the rules of the maker. This opened a 3.5-hour window in which a single trader had limited rights to buy the safes that triggered the liquidation.
One bot was able to offer a zero price for the safes and won the auctions because others, partly due to the congestion of the Ethereum network, had no chance. The current crash was spectacular in speed, happened within a 24 – hourly window and based on panic on the traditional and crypto markets.
Proof of text: bitcoinist
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