Squid, which marketed itself as a "play-to-earn cryptocurrency", had seen its price soar in recent days - surging by thousands of per cent.
The second-largest cryptocurrency traded above $4600 before paring those gains, but has logged record highs over the past week — thanks in part to the rising popularity of non-fungible tokens (NFT) and Decentralized Finance (DeFi) projects. Over the last year, ether has outperformed bitcoin, gaining more than 1025%.
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Discrepancy in price of token on spot and futures markets opens opportunities for arbitrageurs
RelatedSmash-hit Bitcoin ETF ups the ante for issuers racing to launchEthereum: the transformation that could see it overtake BitcoinMany Indian expats turn to crypto to remit money
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In this articleWhat Does This Price Drop Mean for Crypto Investors?What If You Haven’t Yet Invested In Crypto?What’s Behind the Latest Bitcoin Drop?
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Cryptocurrency volatility is nothing new, and you should be comfortable with this if you decide to invest.
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The biggest difference between cryptocurrency values and fiat money is that fiat currencies are backed by central governments and declared as legal tender. Its value is basically derived from the fact that the central government has stated that it has value and two parties in a transaction put their trust in that value.
Exchange data from Bybt shows that roughly $46 million worth of long ETH positions were liquidated across the board due to the sudden pullback. Since the flash crash, ETH has also failed to hold above $4,000.