Tellor’s TRB token price surged over 250% in a single day on Saturday due to a particularly illiquid market and maybe overleveraged trading positions. However, on Sunday, the cryptocurrency experienced a 70% decline from its peak.
Tellor is an oracle protocol that shares and retrieves data between various networks using tools based on blockchain technology. Users and data providers who stake their native coin, TRB, to preserve network security are rewarded.
TRB futures on the cryptocurrency exchange OKX experienced a wild session over the weekend, rising from the $180 mark to as high as $737, while spot prices on the exchange and Binance hit $550.
It is possible that traders overleveraged themselves in hopes of profiting even more, but they were caught off guard when a liquidation cascade started, sending prices plunging more than 70% to trade close to $175. According to the data, the whole price movement took place in about six hours.
Due to the extreme price volatility, approximately $40 million in bets against and $17 million in bets on higher prices were liquidated, setting a record for TRB futures.
A wallet connected to Tellor’s development team may have transferred $2.4 million worth of tokens to cryptocurrency exchange Coinbase, where the tokens were probably sold, according to data recorded and referenced by the on-chain analysis tool Lookonchain. This could have contributed to the price decline.
Despite the collapse, TRB has increased in value annually by more than 1,000%, ranking among the best investments of the previous year together with Solana’s SOL and Ethereum ecosystem tokens.
Nonetheless, compared to other well-known tokens like SOL, talk about TRB in the cryptocurrency community has stayed comparatively low, indicating that a smaller number of traders account for the majority of its trading activity and volumes.