April's first two weeks saw more Ethereum loans liquidated than any month since June 2022

Crypto Ecosystems • April 14, 2024, 6:31PM EDT
Published 1 minute earlier on
The Block

Quick Take

  • The volume of loans liquidated on Ethereum lending markets has hit its highest monthly value since June 2022, despite April not even being half over. 
  • Flash crashes from the past few days have likely exacerbated the level of loan liquidations. 

While crypto prices have staged a modest recovery following yesterday's sharp selloff, the volume of liquidations on Ethereum lending markets has already reached its highest monthly value in years—despite April hardly being half over. 

According to The Block's data dashboard, nearly $80 million in liquidations in lending protocol Aave and nearly $50 million in liquidations in Compound make up the vast majority of the liquidations. 

The last month to have a higher volume liquidations was June 2022, the month following the collapse of the $40 billion Terra ecosystem. 

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The crash in the price of CRV also threatened to liquidate Curve founder Michael Egorov's loan, according to Colin Wu. While he was not liquidated, Egorov indicated that he intended to reduce his exposure in a message to the Curve Telegram reviewed by The Block. 

Traders, in addition to lenders, have faced increased liquidations recently as bullish bets soured along with Bitcoin's decline from its recently-minted all time high. According to CoinGlass data, crypto liquidations total nearly $1.7 billion in the last three days, with the majority of liquidations affecting bullish bets. 

 


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© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].