A significant liquidation of cDAI has occurred in an Ethereum address named nakamotosatoshi.eth, coinciding with the recent rally in the broader crypto market. The liquidation, amounting to 93.16 million cDAI, equivalent to approximately $2.13 million, was reported by PeckShield, a crypto intelligence service provider. This loss occurred as the price of Ethereum surpassed the $4,030 mark.
Liquidations like this occur in the decentralized finance (DeFi) ecosystem when the value of a borrower’s collateral in a DeFi agreement drops below a certain threshold. While such losses are irreversible in DeFi, they are not uncommon in centralized crypto markets.
In addition to the nakamotosatoshi.eth address, CoinGlass data reveals that a total of 109,576 traders have experienced liquidations in the crypto market over the past 24 hours. The total liquidation across all exchanges now stands at $353.86 million.
Traders are constantly speculating on the market, and while these unpredictable movements often result in losses, other factors such as untimely asset sales before maturity can also hamper investor capital. For instance, Maker DAO co-founder Rune Christensen and Tron Founder Justin Sun were involved in a scenario where Christensen made a significantly larger profit compared to Sun due to strategic sales of Shiba Inu tokens at the right time.
Despite the large number of liquidated addresses, there are still more wallets in profit across the market, particularly in the Bitcoin, Ethereum, and Cardano ecosystems. According to data from the analytics platform IntoTheBlock, there are currently 52.27 million BTC addresses, representing 100% of the ecosystem’s total profit, as Bitcoin’s price trades at an all-time high above $72,000. Additionally, 94.58% of Ethereum addresses, totaling 105.26 million, are currently in profit.
It is important to note that this content is informational and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.