Celsius Network, a decentralized finance (DeFi) lending giant, has halted withdrawals, swaps, and transfers between accounts. The company announced this news earlier today through a blog post. Celsius said it paused the above services due to extreme market conditions.
Through this course of action, Celsius hopes to place itself in a better position to honor its withdrawal obligations. The company claims this move is intended to benefit the entire Celsius community.
Specifically, Celsius alleged that pausing withdrawals, swaps, and transfers would help stabilize liquidity and operations. In turn, this pause would offer its team a chance to stabilize and protect assets. Celsius added that it has valuable assets and is working hard to honor its commitment.
Ensuring community members that nothing fishy is going on, the Celsius team said,
The company did not disclose how long the pause would last. However, it expects the process of stabilizing liquidity to take time. On the brighter side, users will continue to accrue rewards during the undefined period.
Bears Continue Ravaging the Crypto Market
This news comes as bears continue dominating the crypto space. The crypto sector has put up lackluster performance since the start of the year. However, the collapse of the Terra ecosystem exacerbated the bearish sentiment.
This prolonged bear market has seen the value of Celsius Network’s assets plunge from $24 billion in late December to $3.8 billion now.
At the time of writing, the crypto market’s capitalization is down 7.39%% in the day to hit $1.02 trillion. Bitcoin (BTC) has plunged 9.35% over the past 24 hours to trade at $24.898.02. This is the lowest point the flagship cryptocurrency has hit in over a year.
Ethereum (ETH) is down 11.38% to change hands at $1,290.88. This price denotes a 31.55% drop over the past seven days. Other leading altcoins are also bleeding, recording double-digit losses over the past seven days.