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DeFi Records Second Largest Wave of Liquidations


The decline in the cryptocurrency market on Monday triggered the second largest wave of liquidations in the history of the decentralized finance (DeFi) space. In total, positions for $ 24.1 million were liquidated, according to data from the DeBank service. The largest amount of collateral was liquidated on the Compound platform ($ 13.7 million), followed by Aave with $ 5.4 million.

The record day for this parameter was November 26, 2020, when an instant increase in the value of the DAI stablecoin resulted in the liquidation of $ 88.4 million in the positions of Compound clients. The DAI price on the Coinbase Pro platform, used by the Compound oracles to obtain benchmark rates, then jumped 30%.

In addition, according to DeBank, over the past 24 hours, the amount of assets recorded in the DeFi space has dropped from $ 44.5 billion to $ 38.5 billion. This decline was the largest in absolute terms for all time.

Yesterday, the price of bitcoin fell back by $ 10,000, and the rate of ether on the Kraken exchange dropped to $ 700. At the same time, about $ 1,400 was traded on other ETH exchanges. In addition to market volatility, the volume of liquidations was influenced by the high workload of the Ethereum blockchain, which impedes the normal functioning of DeFi services and timely closing of positions by users.

Another consequence of the market decline on Monday was a temporary drop in the value of bitcoin assets of institutional investors by $ 13.6 billion. According to the Bitcoin Treasuries portal, the value of 1.3 million bitcoins held by 41 companies fell from $ 76.7 billion to $ 63. 1 billion. MicroStrategy, for example, now has $ 3.5 billion in cryptocurrency, whereas yesterday the value of its assets was estimated at $ 4.1 billion. For most of the list participants, positions remain profitable, given that the bitcoin price remains above $ 50,000.

According to the observations of the Bybt platform, 474,968 traders have been liquidated in the futures market in the last 24 hours.

“In total, $ 4.4 billion was liquidated! This is the craziest day in the history of bitcoin futures, ”writes Bybt.

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