A lot of fear, uncertainty, and doubt or FUD has been happening in the market as Russia started its invasion of Ukraine. Because of this, traders on leverage have also been affected as 163,126 traders were all liquidated in the span of about 24 hours.
Bitcoin ranked first with the highest liquidation with Ethereum and Terra coming in at second and third, respectively.
Russia and Ukraine Tensions Lead to Massive Liquidation
According to a tweet by Defy Trends, the liquidation was an "effect of the tensions caused by the conflict between Russia and Ukraine." This has now resulted in major volatility not just in the crypto market but other markets as well.
As seen in the tweet, ten different cryptocurrencies were listed. These cryptocurrencies include Bitcoin, Ethereum, Terra, Solana, Ripple, Dogecoin, Cardano, Chainlink, Avalanche, and even Polkadot. The largest liquidation was seen with Bitcoin as $258 million have been wiped out.
$9.1 million worth of Dogecoin was also wiped out while a larger $208 million worth of Ethereum was wiped out as well. In addition, Polkadot was at the bottom of the list with a smaller amount of $6.7 million being liquidated.
Liquidated Positions in the Last 24h:
Bitcoin
Cryptocurrency ticker: BTC
Total amount liquidated: 258 million USD
Ethereum
Cryptocurrency ticker: ETH
Total amount liquidated: 208 million USD
Terra
Cryptocurrency ticker: LUNA
Total amount liquidated: 14.9 million USD
Solana
Cryptocurrency ticker: SOL
Total amount liquidated: 14.7 million USD
Ripple
Cryptocurrency ticker: XRP
Total amount liquidated: 11.6 million USD
Dogecoin
Cryptocurrency ticker: DOGE
Total amount liquidated: 9.1 million USD
Cardano
Cryptocurrency ticker: ADA
Total amount liquidated: 8 million USD
Chainlink
Cryptocurrency ticker: LINK
Total amount liquidated: 7.9 million USD
Avalanche
Cryptocurrency ticker: AVAX
Total amount liquidated: 7.7 million USD
Polkadot
Cryptocurrency ticker: DOT
Total amount liquidated: 6.7 million USD
How Does Leveraging Work?
Liquidation happens when a position is leveraged either long or short. In this case, the positions that were leveraged were on the "long" side, which means that since the price went down, their positions were also wiped out as well.
Leveraging relies on multiplying the original bet by borrowing money. The benefit of this is if a target price is hit and the position is sold, traders would then multiply their original bet and earn more from a smaller increase.
Read Also: BTC Plunges By 7.5% Amid Russia-Ukraine War | What Will it Imply in the Market?
$515.44 Million Liquidated in the Last 24 Hours
The disadvantages of using leverage, however, is that due to the original trade being multiplied, it is also at risk of liquidation or basically the investment going to zero. As seen on Coinglass, the total liquidation for the last 24 hours amounted to $515.44 million.
The highest liquidated broker on the list is Okex with a whopping $137.78 million liquidated in total. To follow, Binance came in second place at $127.91 million in total liquidated.
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This article is owned by Tech Times
Written by Urian B.
