On another red day, cryptocurrencies experienced a sell-off. For some altcoins, it was rather brutal.
Much like last month when Ether’s price on cryptocurrency exchange Kraken flash crashed to $700 from $1,940 and then climbed back to $1,780, this time a similar thing happened but on Binance.
The price of DOT fell from about $35 to a mere $0.2.
“Someone just fat fingered a $70MM notional short open on binance coin margined DOT futures,” noted one Twitter user.
On Kraken, the day the ETH price flash crashed, the anomaly happened with ADA as well as its price fell from $1.14 to $0.15 only to go back to the earlier price level. In the aftermath, the exchange gave “retention incentives” to affected users.
“Our market prices are not set by Kraken, but rather by our clients who are the buyers and sellers,” said Kraken in its explanation at the time.
DOT is currently trading above $33, down 22.5% from its ATH of $42.25 from less than a fortnight ago but up 295% YTD.
Interestingly, a good bunch of its circulating supply, more than 63%, is locked for staking, which provides upward pressure to price.
Polkadot is sitting at the 6th spot with a market cap of $29.8 billion, up above Chainlink (LINK), Litecoin (LTC), and XRP but down under BNB and Cardano (ADA).
The blockchain has been gaining a lot of traction thanks to high fees on the Ethereum network and Polkadot’s promise of interoperability between blockchains. Hundreds of projects are already actively building on the platform.
DOT has also been seeing growth in its aggregate futures open interest, which has grown by about 700% over the past two months to 575 million, right behind Bitcoin, Ether, and Cardano.
Last month, the Swiss-based ETP issuer, 21Shares AG, launched Polkadot (DOT) ETP, which gathered more than $25 million in just 15 days, and today the AuM has reached nearly $34 million.
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