This shows the fragility in XRP-backed loans. Watch for further liquidations.
XRP loans see 883 liquidations, $53M still at risk
Recent data reveals that XRP-backed borrowers faced 883 liquidation events, surrendering around 4.18 million cbXRP. This took place on a lending market where borrowers use cbXRP as collateral to obtain USDC. During this period, liquidators repaid over 4 million USDC of debt, indicating big stress in this segment.
As of November 13, approximately 53.5 million USDC remains outstanding against 121.7 million cbXRP in collateral. The market operates on a liquidation threshold of 62.5% loan-to-value, meaning that a decline in collateral prices can lead to more loans entering liquidation eligibility. An analysis suggests that a further 10% drop in prices could put an additional 8.84 million USDC in debt at risk.
For traders, this situation shows the importance of monitoring collateral values and the potential for increased liquidations. The next steps for borrowers will depend on their ability to repay debts or add collateral. Observing how the seized cbXRP is utilized will provide insights into future selling pressure for XRP holders.
$XRP
#Liquidation #CryptoNews
XRP loans see 883 liquidations, $53M still at risk
Recent data reveals that XRP-backed borrowers faced 883 liquidation events, surrendering around 4.18 million cbXRP. This took place on a lending market where borrowers use cbXRP as collateral to obtain USDC. During this period, liquidators repaid over 4 million USDC of debt, indicating big stress in this segment.
As of November 13, approximately 53.5 million USDC remains outstanding against 121.7 million cbXRP in collateral. The market operates on a liquidation threshold of 62.5% loan-to-value, meaning that a decline in collateral prices can lead to more loans entering liquidation eligibility. An analysis suggests that a further 10% drop in prices could put an additional 8.84 million USDC in debt at risk.
For traders, this situation shows the importance of monitoring collateral values and the potential for increased liquidations. The next steps for borrowers will depend on their ability to repay debts or add collateral. Observing how the seized cbXRP is utilized will provide insights into future selling pressure for XRP holders.
$XRP
#Liquidation #CryptoNews
