Unlucky Cardano trader loses $45 million after ADA fell by 22%

A Cardano (ADA) trade valued at over $45 million was wiped out clean when the cryptocurrency plunged by 22% along with almost the entire crypto market.

The multi-million liquidation order took place at crypto exchange Huobi and was owned by a single entity (either a wealthy individual or a trading firm betting big on the rise of the ADA token).

A more comprehensive analysis of the rare altcoin-related event revealed the order was part of ADA trades worth over $67 million that were liquidated on Huobi, $65 million of which belong to “long” positions or traders betting on higher prices.

Staggering liquidations and losses

Cardano traders are now left to deal with huge losses as the price slump led to a series of big liquidations across different exchanges.

On Binance, ADA liquidations reached $37 million while Bybit also recorded $12 million. In totality, over $127 million worth of the cryptocurrency was liquidated on a number of crypto exchanges, 90% of which are “long” trades.

Meanwhile, a bitcoin trader was the most unlucky of all affected after losing $67 million when the asset temporarily fell below $30,000, accounting for over $8.59 billion worth of liquidations. Some $3.62 billion of that are from bitcoin alone.

Could be a roadblock for Cardano

Over the past year, ADA has seen an impressive over-8,000% increase in its value. For the past month, the token was up by 30% and as of May 17, Cardano millionaires increased to 6,710.

At press time, ADA is exchanging hands at $1.54 and has been down by 17.3% for the past day and is staring at a 1.9% decline for the past week.

While big losses in liquidations on different exchanges could present as roadblock, it still remains as the 6th largest cryptocurrency with a market capitalization of almost $50 billion, according to CoinGecko.

 

Image courtesy of Cointelegraph News/YouTube

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