After a weekend of massive selling caused by the escalating tensions between Israel and Iran, the liquidation volume in the Ethereum-based lending market reached its highest monthly level in years, even though only half of April has passed.
According to data from The Block, the liquidation volume of just the lending protocol Aave in April reached $80 million, while Compound’s liquidation volume was close to $50 million. The total liquidation volume of these two protocols amounted to approximately $130 million. The last time the monthly liquidation volume exceeded this figure was in June 2022, after the collapse of the Terra ecosystem, when over $300 million in assets were liquidated on the Ethereum chain.
On the other hand, the collapse of CRV prices also seems to threaten Curve founder Michael Egorov’s debt position. According to information shared by on-chain analyst Yu Yin, due to the market downturn, Michael Egorov’s borrowing positions on various platforms have now entered the danger zone.
