wBTC and ETH On-Chain Collateral Face Potential Liquidation -Breaking
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© Reuters wBTC and ETH On-Chain Collateral Face Potential Liquidation- Recently, data has shown that on-chain collateral to ETH or wBTC is at risk of liquidation.
- Ethereum’s price now stands at $1,453.49 after a double digit, 12.89% fall in price over the last day.
- BTC’s price has dropped 6.35% over the last day and 7.92% over the last 7 days.
Data shows that two of the 20 most valuable cryptocurrencies (in terms of market cap) will be liquidated of certain on-chain collateral if they drop below a certain price.
According to data released from Parsec Finance, a portion of both Ethereum’s (ETH) and Wrapped Bitcoin’s (wBTC) on-chain collateral will be liquidated if their prices drop lower.
To be exact, should ETH’s price fall to around $1,150, then nearly $500 million worth of on-chain collateral will face liquidation. If ETH’s price drops to around $1,150 or more, then wBTC would have over $300 million in on-chain collateral.
According to CoinMarketCap, ETH currently ranks number 2 among the 20 most popular cryptocurrencies by market capital. wBTC is ranked 11th. The market capitalization of ETH stands at around $176.77 Billion, while that for wBTC is $7.52 Billion.
Each coin experienced a drop in value over the previous 24 hours, as well as the past 7 days. Ethereum’s price now stands at $1,453.49 after a double digit, 12.89% fall in price over the last day and a 18.99% drop in price over the last week.
Meanwhile, wBTC’s price has dropped 6.35% over the last day and 7.92% over the last 7 days. It is currently priced at $27.399.68
Both ETH and wBTC are following the same trend as the rest of the crypto market at the moment, which has seen the majority of the top cryptocurrency’s experience a price slump over the last week and day, including the current market leader, (BTC), which has seen a daily drop of 6.52% and a weekly drop of 7.97%.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. This article is not intended to be used as investment advice. CoinQuora advises its users to research cryptocurrency before making any investment.
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