According to BlockBeats, data from IntoTheBlock reveals that the total amount of high-risk loans, defined as loans within 5% of their liquidation price, surged to $55 million on Wednesday, marking the highest level since June 2022. Loans within 5% of their liquidation price indicate that if the collateral's value drops by 5%, it will no longer cover the loan, triggering liquidation.

IntoTheBlock stated in a market update, 'Large-scale liquidations could impact collateral values, putting more loans at risk of liquidation, potentially causing a downward price spiral.'