DeFi sees second-largest liquidation in history as crypto market dips

Yesterday’s decline of the crypto market has triggered the second-largest wave of liquidations in decentralized finance’s (DeFi) history as a total of $24.1 million worth of positions got wiped, according to metrics platform DeBank .
The largest amount of collateral was liquidated on DeFi platform Compound ($13.7 million), followed by Aave with $5.4 million.
Previously, the largest wipe to date occurred on November 26 last year, when an instant increase in the value of DAI stablecoin resulted in the liquidation of $88.4 million worth of positions on Compound. At the time, DAI’s price on Coinbase Pro, which Compound’s oracles used to obtain benchmark rates, jumped by 30%.
Additionally, the total dollar value locked (TVL) in the DeFi sector dropped from $44.5 billion to $38.5 billion yesterday, according to DeBank. This is the single largest daily TVL decline ever.
Yesterday, Bitcoin’s price plunged by $10,000 while the price of Ethereum (ETH) on crypto exchange Kraken dropped to as low as $700. At the same time, ETH was traded at around $1,400 on other exchanges.
In addition to increased market volatility, the sheer amount of liquidations was also catalyzed by a high load on the Ethereum blockchain, which impeded the normal functionality of DeFi services and prevented traders from closing their positions in a timely manner.

In the past 24 hours , 474,968 traders were liquidated. In total $4.4B was liquidated!This is the craziest day in #Bitcoin futures history.

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