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If Ethereum Reaches This Level, DeFi Protocols At Risk Of Being Liquidated

Published 22/11/2022, 14:01
©  Reuters If Ethereum Reaches This Level, DeFi Protocols At Risk Of Being Liquidated
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Benzinga - The recent drop in Ethereum (CRYPTO: ETH) price will have a cascading effect on decentralized finance (DeFi) platforms, as investors are ready to liquidate their ETH holdings In the wake of the FTX (CRYPTO: FTT) fallout.

What Happened: According to TVL aggregator DeFiLama, over 115,500 ETH are ready to be liquidated if the price reaches $718.72. This means $83 million will be liquidated around the $720 mark.

The available data points to DeFi platforms MakerDAO and AAVE as the biggest targets.

See More: Best Cryptocurrency to hedge against inflation

This comes as a whale holding 720,000 ETH, $817 million has woken up after two years of being dormant, according to an on-chain analytics report by Lookonchain.

On Monday, the hacker moved over 180,000 Ethereum to 12 new wallets, evenly distributing 15,000 ETH to each wallet, data from Etherscan showed. The hacker behind the FTX exploit has been spotted yet again trying to move the funds to several wallets, in the hopes of liquidating them.

Price Action: At the time of writing, ETH was trading at $1,100, down 1.81% in the last 24 hours, according to Benzinga Pro.

Read Next: Bitcoin, Ethereum, Dogecoin Fall: Analyst Says 'More Blood Yet To Come' As Genesis Crisis Adds To Crypto Carnage

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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