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.
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.
