A $20 million decentralized Chainlink short was just liquidated on Aave as the cryptocurrency was unstoppable over the past few days after dropping 22 percent from its July high. LINK resumed the parabolic uptrend that it started after March’s capitulation crash so let’s see further in our Chainlink news today.
The market data shows that today, the price of ETH-based altcoins moved across $14 price point for the first time ever as the coin was up 40 percent during its highest time in a 24-hour period. LINK’s explosion made it the sixth biggest crypto by market cap while Bitcoin Satoshi Vision is now seventh and Litecoin eight. This major strength in the LINK price meant that those shorting the coin or the ones betting on the coin to crash found themselves out of their positions.
The $20 million decentralized tokens short that were liquidated on Aave, culminated a day ago when the on-chain data indicated that millions of dollars worth of on-chain coins short positions were fully or partially liquidated. When LINK moved past the $11 price point, the reports started to flood Crypto Twitter that the on-chain short positions on Aave were getting fully liquidated. The most notable of these short positions was the $20 million one as it entirely liquidates when LINK spiked above $14 with DeFi charts indicating the address net worth is now $299.
The liquidation of the position seems to have come after the short holder deposited thousands of dollars worth of collateral while trying to keep the bet afloat. The DeFi analysts haven’t issued a post-mortem of the volatility in LINK’s price yet but it’s likely that there were other holders of on-chain shorts during the price surge. The data suggest that millions’ worth of short positions were also liquidated on centralized platforms.
One trader noted that according to this data, there was a $16 million LINK position along with the series $1 million positions that were liquidated on a crypto platform. The analysis by another trader shows that there are $40 million liquidated on Binance’s Chainlink market alone. The short holders made someone believe that at least some of the positions liquidated today opened by Zeus Capital which is a crypto fund that criticized LINK in the past month.
Zeus Capital spent a lot of the time publishing dozens of tweets about how Chainlink will collapse and they even released a report on why LINK will hit $0.07 then proceeded to attempt to pay the crypto influencers 5 BTC to bash the cryptocurrency.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]