Tron [TRX] plunges, longs liquidated, credit goes to ‘his excellency’
Led by “his excellency” Justin Sun, Tron [TRX] has struggled to become a high-ranking cryptocurrency per its price. Moreso, the cryptocurrency had not been able to significantly pull itself out of anguish lately, despite its high market capitalization.
How much are 1,10,100 TRXs worth today ?
Despite that, the native cryptocurrency of the decentralized blockchain-based operating system lost 7.43% in the last 24 hours. This decrease happened on account of the U.S. SEC probe of its founder.
Following the controversy, Tron’s Total Value Locked (TVL) lost its seven-day green momentum as it dropped 4.33%. The TVL measures investors’ interest in a particular blockchain or protocol. According to DeFiLlama, the Tron TVL dropped to $5.12 billion.
Although it was the same value as the Binance Smart Chain, the decline implied that the Tron blockchain quickly began to experience a lack of liquidity.
Source: DeFi Llama
But this was expected as the “unregistered security” tag created dismay among investors who were initially willing to make smart contracts deposits.
Furthermore, the TVL was not the only casualty that felt the aftereffect of the SEC label. According to Coinglass, long-positioned traders also followed suit.
Information from the crypto derivatives platform showed that TRX’s total liquidations were as high as $2.09 million. Interestingly, $1.96 million out of this occurred within 12 hours as the development caught traders by surprise.
This wipeout was one that had not been recorded in a long while. A close examination of the data revealed that long liquidations on 22 March were $1.22 million.
However, TRX’s brief recovery seemed to have lowered the number at press time. And unfortunately, shorts who were late
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