A massive cDAI liquidation has occurred at an Ethereum address known as nakamotosatoshi.eth during the recent crypto market rally. PeckShield, a crypto intelligence service provider, reported that the total liquidation amounted to 93.16 million cDAI, equivalent to around $2.13 million. This loss occurred as the price of Ethereum surpassed $4,030.
Liquidations of this nature happen in the decentralized finance ecosystem when the value of a borrower’s collateral in a DeFi agreement drops below a specific threshold. While these losses are irreversible in DeFi, they are also common in centralized crypto markets.
In addition to the Nakamoto address, CoinGlass data reveals that a total of 109,576 traders have been liquidated in the past 24 hours, resulting in a total liquidation of $353.86 million across all exchanges. Traders face losses due to unpredictable market movements, as well as other factors such as selling assets prematurely.
One example of premature selling involved Maker DAO co-founder Rune Christensen and Tron Founder Justin Sun. Sun sold his Shiba Inu tokens too early, while Christensen made a larger profit by strategically selling when the price of SHIB reached an intra-day high of $0.00004 on March 6.
Despite the significant number of addresses liquidated, there are more wallets in profit across the market, particularly in the Bitcoin, Ethereum, and Cardano ecosystems. According to IntoTheBlock, there are currently 52.27 million BTC addresses, accounting for 100% of the ecosystem’s total profit, as BTC trades at an all-time high above $72,000. For Ethereum, 94.58% of its addresses, totaling 105.26 million, are currently in profit.
It is important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s own and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.