Data: ‘Risky’ crypto loans surge to highest level in two years
According to IntoTheBlock data, the total amount of high-risk loans (defined as loans with a liquidation price within 5%) rose to $55 million on Wednesday, reaching the highest level since June 2022. Loans with a liquidation price within 5% mean that if the price of the collateral drops by 5%, it will no longer cover the loan, triggering liquidation.IntoTheBlock stated in a market update, "Large-scale liquidation could impact the value of collateral, causing more loans to face liquidation risk and resulting in a spiral of price declines."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
SEC’s Ripple appeal doesn’t challenge XRP non-security status
Worldcoin rebrands as ‘World,’ unveils next generation Orb
US has 26M strong ‘crypto voting bloc’ ahead of elections — Survey