Mermaid's tears are a form of currency found in the underwater section of Fossil Island. They can be obtained by looting various chests and clams around the eastern part under the water.
Based on purchasing the Merfolk trident, which costs 1,123,512 coins on the Grand Exchange, each mermaid tear is worth an average of 2,809 coins.
Upon reaching 0% oxygen, a random amount of tears between 10 and 20 will be lost, regardless of how many tears the players have in their inventory at the time.
Item sources
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Gallery
One mermaid's tear
Two mermaid's tears
Three mermaid's tears
Four mermaid's tears
Five mermaid's tears
Trivia
Speaking with Mairin reveals that mermaid tears are actually pearls which is why they don't dissolve in water.