Ethereum loan liquidations hit a new high in early April, with significant liquidations on Aave and Compound.
In April this year, the Ethereum lending market saw a liquidation wave that surpassed any month since the turmoil in June 2022.
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Terra sees highest liquidation volume since collapse!
The Block data shows that lending protocols Aave and Compound are at the epicenter of this wave, with nearly $80 million and $50 million in liquidations respectively. The total liquidation volume marks the highest since the collapse of the $40 billion Terra ecosystem in June 2022.
Curve founder faces liquidation crisis again
The crypto market has recently experienced a pullback, putting the health of users' borrowing on various chains in crisis, with Curve founder Michael Egorov among them. On-chain analyst Yu Jin found that Egorov's borrowing position, valued at over $90 million, is once again on the brink of liquidation, with some positions having health factors as low as 1.1.
Another round of OTC fundraising for repayment? Curve founder CRV faces liquidation crisis again, borrowing health ratio drops to 1.1
Wide-ranging market impact
The impact of this wave of liquidations goes beyond lenders, extending to many traders. CoinGlass data shows that in just the past three days, crypto liquidations have reached nearly $1.7 billion, predominantly affecting optimistic or bullish traders.
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