Bitcoin, Cardano, Ether and Everything Else Are Still Down 99% on CoinMarketCap

A price glitch has since been fixed, but some of the turbulence remains.

Dec 15, 2021 at 7:34 a.m. UTC
Updated Dec 15, 2021 at 3:55 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

The price of bitcoin, the world’s largest cryptocurrency by market capitalization, was down 99% on crypto tracking site CoinMarketCap. But don’t worry, your bitcoins aren’t suddenly worthless. The extreme drop in prices was due to a glitch on the website, which surfaced during the early hours of Wednesday.

The glitch wrongly displayed cryptocurrency trading prices and was solved after nearly an hour. Pricing data has since come back to normal at press time, but data for all-time highs for cryptocurrencies remains faulty. For example, bitcoin’s all-time high is still being displayed as $8.6 million on CoinMaketCap, which is far beyond its $69,000 peak in May 2021, as per CoinGecko.

Sites like CoinMarketCap, owned by Binance, and CoinGecko are gatekeepers of the crypto world for retail audiences. They track pricing and trading data on crypto exchanges in real time – referencing the data against each other for a double-check – before publishing prices on their site.

This means if bitcoin is shown trading at $49,000 on CoinMarketCap, the figure is calculated by recording the actual trading prices on several trusted crypto exchanges.

But as with all things technology, mistakes do occur. A bug on CoinMarketCap wrongly displayed the prices of all cryptocurrencies early Wednesday, even as exchange data itself remained accurate.

This led to the price of bitcoin being displayed as high as $789 billion, giving it a market capitalization of $14.7 quintillion. Other large-cap cryptocurrencies like ether and ADA witnessed similar woes, reaching prices as high as $757,200 and $256, respectively. The real prices, at press time, are $3,867 and $1.25.

The glitch caused the likes of Chainlink co-founder Sergey Nazarov to recommend decentralized alternatives to provide pricing data.

“This recent glitch is exactly why blockchain applications and smart contracts need to use decentralized oracle networks like Chainlink,” he said in a message to CoinDesk. “Relying on a single oracle, or a single source of data, is a recipe for disaster that undeniably puts user funds at risk.”

Also, some decentralized finance (DeFi) projects that use CoinMarketCap data halted their offerings as a measure to protect their mechanisms. “Due to an error with the CoinMarketCap API, all DeFiChain Vaults have automatically been halted, for now, ensuring the safety of your loans,” said DeFiChain, a bitcoin-centric lending service.

DeFi protocols rely on smart contracts for decentralized services like lending and borrowing, using pricing data from third-party services to ensure products offered to users are in line with market prices.

Meanwhile, CoinMarketCap addressed the glitch and detailed the next steps in a tweet this morning, “Following the irregularities we observed on our platform this afternoon, despite the issue having been fixed, we will be rebooting our servers as a final step in accordance with our internal remediation plan.”

However, pricing data for all-time high data on CoinMarketCap remains faulty at press time.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Trending

1
CoinDesk - Unknown
GameStop Unveils Crypto and NFT Wallet, Shares up 3%

A beta version of the self-custodial Ethereum wallet is available to download now from GameStop's website.

A beta version of the self-custodial Ethereum wallet is available to download now from GameStop's website.

CoinDesk - Unknown
2
CoinDesk - Unknown
Japanese Bank Sumitomo Mitsui Trust to Establish Digital Asset Custodian: Report

The bank's pivot to digital assets comes alongside a global banking shift toward cryptocurrencies.

The bank's pivot to digital assets comes alongside a global banking shift toward cryptocurrencies.

CoinDesk - Unknown
3
CoinDesk - Unknown
BNP Paribas Joins JPM's Blockchain Network Onyx for Fixed Income Trading: Report

The French bank will use the Onyx network for short-term fixed income trading.

The French bank will use the Onyx network for short-term fixed income trading.

CoinDesk - Unknown
4
CoinDesk - Unknown
Crypto Valley Venture Capital Launches African Blockchain Early-Stage Fund

The venture capital investor published a report which found funding for African blockchain startups far outpaced investment in other venture funding.

The venture capital investor published a report which found funding for African blockchain startups far outpaced investment in other venture funding.

CoinDesk - Unknown