Ethereum Lending Markets See Highest Monthly Liquidation Volume in Years
The cryptocurrency market is experiencing a tumultuous time as liquidations on Ethereum lending markets have surged to their highest monthly value in years, despite it only being mid-April. Following a sharp selloff, crypto prices have seen a modest recovery, but the volume of liquidations tells a different story.
According to data from The Block, nearly $80 million in liquidations on lending protocol Aave and almost $50 million in liquidations on Compound account for the majority of the liquidations. The last time such high volumes of liquidations were seen was back in June 2022, following the collapse of the $40 billion Terra ecosystem.
The crash in the price of CRV has also put pressure on borrowers, with Curve founder Michael Egorov’s loan at risk of liquidation. While Egorov managed to avoid being liquidated, he expressed his intention to reduce his exposure in a message to the Curve Telegram group.
Traders and lenders alike have been facing increased liquidations as bullish bets turned sour with Bitcoin’s decline from its recent all-time high. CoinGlass data shows that crypto liquidations have totaled nearly $1.7 billion in the last three days, predominantly affecting bullish positions.
Despite the volatility in the market, The Block remains committed to delivering objective and timely information about the crypto industry. As of November 2023, Foresight Ventures is a majority investor in The Block, with investments in other companies in the crypto space. It is important to note that this article is for informational purposes only and should not be construed as financial advice.
