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Recent data shows that 2 of the top 20 cryptocurrencies by market cap face liquidation of some of their on-chain collateral should their prices drop to a certain level.
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. On the other hand, wBTC will have more than $300 million worth of on-chain collateral should its price reach near $21,600 or face liquidation.
As things stand, ETH is ranked number 2 on the top 20 cryptocurrencies by market cap and wBTC is ranked number 11, according to the crypto market tracker CoinMarketCap. The total market cap for ETH is around $176.77 billion and wBTC has a total market cap of $7.52 billion.
Both coins experienced a dip in price over the last 24 hours as well as over the last 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. Its price now stands 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, Bitcoin (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. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.