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%.
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