Trump's magic is in full swing. Between the fiasco of its same, the tumble of bitcoin and altcoins, and now Ethereum, nothing seems to be spared. The digital asset that the former president wants to integrate into the United States Strategic Reserve has experienced dark days. In February, ETH was the victim of a violent liquidation which rocked the entire Crypto market, highlighting the flaws and the brutality of decentralized loans.
Ethereum plunges: $ 500 million liquidated in a few days
The figures are to give cold sweats: $ 500 million liquidated in a few daysthe second largest monthly liquidation in the history of the DEFI, just behind the Krach in May 2021 ($ 670 million).
THE Aave and Compound loan platforms were the most affected. Their automatic liquidation mechanism has done its job, but not without breakage. Third -party liquidators rushed in Sub-collateralized positionsrecovering the collaterals at broken prices, between 5 and 15 % below the market.
What to wake up The worst memories of 2021.
- 2.06 million ETH ($ 5.09 billion) were collateral on Aave;
- 3.56 billion USDT also at stake;
- Billions in USDC, Wsteth and other embeded tokens.
“” If ETH falls under the $ 1,780, $ 372 million in leverage will be swept “Warns @Backdoor_News. A prophecy that almost came true.
So when is the next purge?
A bloodbath on crypto exchanges and derivatives
Carnage did not stop in Ethereum. The entire crypto market has been shaken, and the figures make you dizzy. Bitcoin and ETH plunged 18 % and 26 % Respectively, causing a liquidation cascade.
Bybitonly Exchange to unveil its real liquidation data, has recorded a historic week ::
- $ 1.4 billion in long -liquidated positions;
- $ 383 million evaporated in a single day on February 25;
- Over 41 % of ETH ETH contracts on Bybit.
The other crypto exchanges like Binance, Okx and Huobi were more discreet, probably due to a underestimation of real liquidations. Meanwhile, investors scrutinize the next wave.
“” More than $ 4 billion in leverages were liquidated last week “, Underlines The Dude.
The message is clear: the crypto market is a mines field. But how far will this hemorrhage go?
In short, February ended on a nightmare note for Ethereum, with a fall of 20 % in three days. New proof that crypto is not a long, quiet river.
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