Crypto News- Despite a brief uptick in crypto prices after yesterday’s steep dip, Ethereum lending markets are witnessing a surge in liquidations, marking the highest monthly figures in years, and it’s only mid-April.
Ethereum Loan Liquidations Surge in April’s Opening Fortnight, Highest Since June 2022
Recent data from The Block’s dashboard reveals staggering liquidation volumes, with approximately $80 million on Aave and close to $50 million on Compound. This spike hasn’t been seen since the aftermath of the $40 billion Terra ecosystem collapse back in June 2022. Notably, the plummet in CRV’s price even posed a threat to Curve founder Michael Egorov’s loan, as shared by Colin Wu. Although Egorov managed to evade liquidation, his subsequent move to minimize exposure, as disclosed in a message to the Curve Telegram community, reflects the cautious sentiment prevailing.
Bitcoin’s Retreat Sparks 1.7 Billion Dollars Loss: Traders and Lenders Struggle Amidst Liquidation Frenzy
As Bitcoin takes a step back from its recent zenith, traders and lenders are thrust into a maelstrom of liquidations. Optimistic positions, once buoyed by bullish sentiment, now sour as the market mood darkens.
In the wake of this downturn, CoinGlass data paints a grim picture, revealing a staggering collective loss of nearly $1.7 billion incurred over the past three days alone. The brunt of this financial upheaval is borne predominantly by bullish positions, highlighting the extent of the market’s turmoil.
With uncertainty looming and losses mounting, traders and lenders find themselves in a precarious position, navigating through choppy waters as they strive to weather the storm.
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