Ethereum lending platforms have experienced an increase in liquidations as a result of the recent volatility in the cryptocurrencycurrency markets.
Even though April is just halfway through, the amount of liquidations on these platforms has already exceeded the monthly highs seen in previous years.
Prior to the $40 billion Terra ecosystem fire collapse, which resulted in a forced liquidation platform across loan platforms, the market spec was last liquidated at such a high level in June 2022.
Among the most frequent occurrences are liquidations, which often take place inside the two main lending procedures, Compound and Aave, with quantities of $50 million and $80 million, respectively. The whole month’s liquidations have taken place through these two significant market hubs. More than 90% of the liquidations this year have been attributed to them.
The recent market turbulence has also jeopardized the financial stability of prominent industry figures. According to Colin Wu’s report, Curve founder Michael Egorov’s loan was in danger of being repaid due to the sharp decline in CRV’s value. Egorov, however, was able to escape liquidation.
Traders who had made bullish wagers on the market have also had to deal with large liquidations, in addition to the loan markets. Data shows that over the last three days, there have been approximately $1.7 billion in cryptocurrencycurrency liquidations, most of which have included long bets.
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