Last week, Aave V3 experienced its highest daily liquidations since the beginning of February, coincidental with considerable market volatility on the Ethereum Minet. According to Galaxy Research, around $ 98.6 million in collateral was liquidated between 6 and 7 April, after a similar trend earlier in the year when around $ 211.2 million was liquidated during the first tariff threats by President Trump. In the recent liquidations, Ethereum (ETH) accounted for $ 66.9 million, or 68% of the total, while packed Bitcoin (WBTC) was $ 9.8 million or 9.8%. Despite ETH leader in liquidations, it only represents 21% of the actively borrowed collateral on Aave V3. Galaxy Research attributes the significant impact of ETH to two main factors: its relative underperformance in the wider market and the aggressive leverage by borrowers, which increases the downward risk during liquidation events.
Menu
Copyright © Recession Profit Alerts.