DeFi liquidations hit yearly high above $400 million in past 24 hours amid market turbulence

Quick Take

  • On-chain liquidations on DeFi protocols reached over $400 million in the past 24 hours.
  • The increase is primarily due to a crypto market selloff, with Bitcoin dropping below $53,000 and ether hitting $2,300.
  • Centralized exchanges recorded futures liquidations above $1 billion over the past day.

On-chain liquidations across decentralized finance protocols on Ethereum have reached a new yearly high, with over $400 million in liquidated positions in the past 24 hours, according to data from Parsec Finance.

This comes amid a substantial uptick in market volatility and a broad crypto market selloff. Earlier today, Bitcoin plunged to its lowest since February, dropping below $53,000, while ether hit a six-month low of about $2,300.

 

Most of these liquidations were concentrated in three main assets, affecting lending protocols such as Aave. ETH collateral faced the brunt of the liquidations, amounting to $216 million over the past day. Wrapped staked ETH (wstETH) followed with liquidations totaling $97 million; wrapped bitcoin (wBTC) also saw significant liquidations totaling $35 million.

Amid the spike in liquidation, Aave founder Stani Kulechov said the decentralized lending platform earned $6 million in liquidation fees.

This liquidation spike could be attributed to various factors, including sudden downward price movements across the broader market.

Meanwhile, centralized exchanges recorded futures liquidations above $1 billion in the past 24 hours, according to CoinGlass data. About $900 million of these were long leveraged positions, data from Coinglass shows. Over half a billion dollars of liquidations impacted Ethereum and Bitcoin traders alone.

This article has been updated with complete data on total liquidations for the day.


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About Author

Vishal Chawla is The Block’s Crypto Ecosystems Editor and has spent over seven years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal can be reached on Twitter at @vishal4c and via email at [email protected]

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