The fall in cryptocurrency prices today triggered the second highest volume of DeFi liquidity in history with $ 12.4 million in loans being forcibly closed within 24 hours.
Based on records, $ 13.7 million or almost 60% loss in the Compound was followed by Aave with total liquidity worth $ 5.4 million.
Liquidity today is the second largest hit DeFi after a $ 93 million margin call driven by a sharp surge in DAI prices on November 26, 2020. With a 30% DAI surge in more than $ 88 million diluted as collateral for cryptocurrency loans in protocols.
At the same time, DeBank also reported a decline in total locked-in value (TVL) from $ 44.5 billion to $ 38.8 billion in the last 24 hours. The 12.8% loss also showed the biggest daily decline since the DeFi market fell 15.4% on Jan 21.
This liquidity becomes even more murky with the surge in gas prices on Ethereum with around the charge charged reaching $ 30 per transaction.
Congestion in the network when prices are falling sharply also makes it difficult for some investors to close their positions on time.
Kraken users are also claiming compensation for massive liquidity caused by the sharp decline in ETH prices to $ 700 on the platform. While around $ 1,400 the asset changed hands in another exchange.
The average large firm that chooses Bitcoin as an investment opportunity also faces losses reaching millions of dollars. For example, Tesla, which invested $ 1.5 billion in early February, lost $ 200 million while MicroStrategy, which owns the most amount of Bitcoin compared to other firms, has seen losses of more than $ 330 million.
At the time of writing, BTC is trading at $ 50,045, down more than 11% while ETH is down $ 1,602, down 15% in 24 hours.
