Shiba Inu’s (SHIB) price on the US-based crypto exchange Coinbase crashed by 50% on Tuesday. This sharp decline contrasted with its steadier performance on other trading platforms.
On Coinbase, SHIB’s price fell from $0.000044 to $0.000020, hovering around $0.000036 on other crypto exchanges. This incident highlights the volatility of the cryptocurrency market and the challenges exchanges face in maintaining liquidity.
The significant crash in Shiba Inu’s price on Coinbase was due to large sell orders that surpassed the exchange’s liquidity. Consequently, by the European morning, SHIB’s market depth on Coinbase rebounded to $1.2 million.
Following this, spot SHIB volumes on the platform surged to $1.7 billion, the highest among its peers. Moreover, despite the early sell-off, SHIB prices recovered impressively, posting a 46% gain in the past 24 hours.
Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
Meanwhile, as Bitcoin neared its all-time high of $69,000, some Coinbase users faced alarming display issues. Specifically, their account balances erroneously showed zero.
A Coinbase spokesperson later clarified that this glitch affected a “small subset of users.” They assured that the assets were secure, pinpointing the issue as a display problem. They confirmed that a prompt fix was implemented to correct the display issues affecting customer account balances and to reduce latency on Coinbase.com.
Furthermore, the instability wasn’t limited to Coinbase or SHIB. Indian cryptocurrency exchanges also witnessed a downturn in altcoin prices. Crypto influencer Sumit Kapoor revealed a more than 20% drop in various tokens on the crypto exchange WazirX, including Jito (JTO), LeverFi (LEVER), and JasmyCoin (JASMY).
The typically stable USDT coin also experienced an unusual dip of around 17% against the INR.
“BTCUSDT and SHIBUSDT markets corrected (SHIBINR especially, because of sudden selling) on all exchanges leading to decrease in the USDTINR prices as well, as all markets are inter-connected,” Sumit Gupta, the co-founder of crypto exchange CoinDCX explained.
Read more: Coinbase Review 2024: The Best Crypto Exchange for Beginners?
These incidents also highlight the critical need for crypto exchanges to maintain adequate liquidity. Such measures can prevent significant price disruptions from large orders. A crypto influencer, SFZ, took to X to criticize the liquidity problems on crypto exchanges
“We’ve been in a bear market for two years, and you guys have built this… Sad to see,” SFZ wrote.