Analysis: Suspicious on-chain activity preceded last weekend's market crash

Suspicious on-chain activity was detected before the large-scale liquidations that occurred last weekend, Cointelegraph reported, citing data from a partner firm of on-chain AI developer Rena Labs. According to the report, 28 anomalies were detected before the crash, a figure roughly four times higher than normal. These included sudden spikes in trading volume and abnormal transaction patterns, as well as several large orders placed in advance that suggest the possibility of spoofing. The analysis suggests the incident should be examined with a focus on the stablecoin USDe. While most stablecoins use external oracles to determine collateral value, USDe is believed to have calculated its value using data from Binance's own order book, a method that could increase the risk of market distortion. Furthermore, USDe trading pairs, which are typically liquid, saw their liquidity nearly vanish during the crash. This meant the market could not function properly, as there were willing traders but no corresponding orders to support transactions.