“USD Coins (USDC) Liquidation increases as volatility increases in the cryptocurrency market”
In recent boom, liquidation has reached a record high level of several cryptocurrency markets, including place trade and place deposits on different stock exchanges. The most prominent affected market is the USDC (the United States dollar coin), which increased by more than 15%last week.
** What is the USD coin (USDC)?
The USD coin (USDC) is a decentralized stableooin designed to customize a ratio of 1: 1 to the US dollar. It was created in August 2018, it was created as an alternative to other stable, such as tether token. The marker value is tied to the US dollar, making it less volatile than other cryptocurrencies.
How does liquidation work?
Liquidation occurs when the market or exchange has a high imbalance in its reserves, causing the price of stable services, such as the fall of the USD coin. In such cases, the backup holder will sell his coin with the current market rate to restore balance. This process is facilitated by an exchange that keeps spare assets on behalf of users.
Increase in liquidation
Recently, the number of liquidation events has increased in several cryptocurrency markets. Place retail and location deposits on stock exchanges such as Binance, Kraken and Huobi have all reported on significant levels of liquidation.
* Binance : Binance Exchange has experienced more than 5,000 liquidation activities a day only last week.
* Kraken : On the Kraken Stock Exchange last week, its liquidation level increased about 30%.
* Huobi : Huobi reported a significant increase in liquidation levels in its seats and places on trading platforms.
Why are liquidations grow rapidly?
Several factors contribute to the increase in liquidation:
* High volatility
: cryptocurrency markets have experienced unprecedented levels of volatility in recent months, resulting in high prices and subsequent liquidation events.
Licheness shortage : Exchange often struggles to maintain sufficient fluid, causing prices to fall and leading to liquidation events.
Regulatory uncertainty : The regulatory environment of cryptocurrency exchange has created uncertainty by encouraging investors to look for safer alternatives, such as the USD coin (USDC).
Conclusion
USD coin (USDC) liquidation has reached a record level, reflecting market volatility and fluid flaws. As the market continues to fluctuate, it is important to remain informed of the latest development and potential risks.
Note: The Predid article is only for information purposes and should not be consulted as investment. Cryptocurrency markets are essentially volatile and prices can fluctuate rapidly. Always do careful research before making any investment decisions.
