According to BlockBeats, on October 18, according to IntoTheBlock data, the total amount of high-risk loans rose to US$55 million on Wednesday, reaching the highest level since June 2022.
High-risk loans are those with a liquidation price within 5%, which will trigger liquidation if the collateral price drops by 5%.
IntoTheBlock said large-scale liquidations could affect the value of collateral, putting more loans at risk of liquidation and causing a downward price spiral.
