DeFi Collateral Liquidations Soar As ETH Prices Dip

Over the past 24 hours, the decentralized finance (DeFi) sector witnessed a significant surge in collateral liquidations, totaling more than $5.4 million, with a substantial portion linked to Ethereum (ETH) assets amounting to $4.27 million. 

According to parsec, more than $5.4 million in collateral was liquidated on the DeFi in the past 24h, including $4.27 million in ETH. If ETH falls to $3,008, $24 million in collateral will be liquidated. On-chain derivatives exchanges GMX, Kwenta, and Polynomial triggered…

— Wu Blockchain (@WuBlockchain) March 19, 2024

Concerns loom as projections indicate that if ETH prices drop to $3,008, an additional $24 million worth of collateral could face liquidation. 

Notably, on-chain derivatives exchanges such as GMX, Kwenta, and Polynomial experienced liquidations exceeding $52 million within the same timeframe.

At present, ETH is trading at $3,291, reflecting a notable 7% decline for the day, contributing to the heightened volatility in the market.

Amidst this downturn, data from Lookonchain reveals the actions of three astute ETH traders who capitalized on the market dynamics over the past four days, collectively selling 26,946 ETH, equivalent to $95.7 million, and securing profits totaling $39 million.

Trader 0xb82 executed a successful trade by selling 7,300 ETH for $24.4 million in stablecoins via Binance at approximately $3,339, realizing a significant profit of $4.59 million, marking the fifth profitable ETH trade for the trader.

Similarly, trader 0xebf strategically deposited the last 8,870 ETH, valued at $33.1 million, to Binance on March 16 at $3,733, ultimately securing an estimated total profit of $25.3 million, representing a remarkable 55.8% increase.

In the past 4 days of market downtime, 3 smart ETH traders have allegedly sold 26,946 $ETH ($95.7M), taking $39M in profit! Is this a sign of recession for $ETH?

1. Trader 0xb82 sold 7,300 $ETH for $24.4M in stablecoins via #Binance at ~$3,339 an hour ago, realizing a $4.59M… pic.twitter.com/d9P8M3BOWi

— Spot On Chain (@spotonchain) March 19, 2024

Additionally, trader 0xa43 seized the opportunity to sell 10,776 ETH for $38.2 million in USDT at $3,544 on March 15, resulting in a substantial profit of $9.14 million, reflecting a 31.5% gain.

Meanwhile, Lookonchain data reveals the actions of a savvy whale who recently deposited 13,691 ETH, valued at $9.06 million, to Binance within the past two hours to capitalize on profit-taking opportunities. 

A smart whale deposited 13,691 $ETH($9.06M) to #Binance in the past 2 hours to take profits.

This whale started trading $ETH on Aug 9, 2023 and made a total of 5 trades.

He lost money in the first trade and won the last 4 trades, with a total profit of $16.9M!… pic.twitter.com/5DtE4ilWMF

— Lookonchain (@lookonchain) March 19, 2024

This seasoned trader has exhibited a successful track record, with profitable outcomes in four out of five trades since initiating ETH trading activities on August 9, 2023, accumulating a total profit of $16.9 million.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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