CoinVoice has recently learned that according to IntoTheBlock data, the total amount of high-risk loans (defined as loans within 5% of the liquidation price) rose to US$55 million on Wednesday, reaching the highest level since June 2022. Loans within 5% of the liquidation price mean that if the price of the collateral falls by 5%, it will no longer cover the loan, triggering liquidation.
“Massive liquidations could impact collateral values, exposing more loans to liquidation risk, creating a downward price spiral,” IntoTheBlock said in a market update. [Original link]