OHM tokens plummeted about 32% in the past day caused by liquidations in Fuse, a Decentralized Finance platform in the Olympus protocol.
The tokens dropped from a high of $264 to $161 on Tuesday, reaching lows that were last seen mid-last year.
OHM has been on a downtrend since October’s $1,360 when it reached a market capitalization of $4 billion. The price fell by 87% as of Tuesday, based on the all-time high.
Olympus uses smart contracts in place of intermediaries to offer financial services to users to develop a stablecoin supported by Cryptocurrencies.
The protocol incentivizes users to deposit or sell their OHM collaterals for discounted OHM via bonds.
Fuse is a borrowing feature developed by Rari Capital. Automatic liquidations are triggered whenever the value of the underlying asset drops below a given level.