By Marko Vidrih on The Capital
Users of cryptocurrency exchanges and DeFi applications began to transfer assets on the Ethereum network at once and overloaded it against the background of today’s market crash.
“ETH network congestion. Average time for confirmations 2680 seconds (44 minutes),” pays attention Binance CEO, Changpen Zhao.
Obviously, a significant part of these transactions was related to the USDT stablecoin transfers. To date, Tether has transferred about 2.9 billion of its tokens to the network of the second-largest cryptocurrency by market cap. The portal ETH Gas Station calls Tether the main consumer of gas.
The ETH rate today decreased by more than 30% and at the time of publication is $139.
This entailed the liquidation of many positions on pledges and derivatives in the decentralized finance (DeFi) space. The situation was aggravated by the aforementioned network congestion, because of which such positions could not always be liquidated in a timely manner, creating additional counterparty risks.
MakerDAO users, for example, were encouraged to review the provision. Some of them replied that they could not do this since the network did not respond to their commands.
The panicked ETH holders, meanwhile, were in a hurry to transfer their assets to exchanges.
Author: Marko Vidrih
Featured image credit: Pixabay