DeFi Whale Sees $106 Million In ETH Liquidated On Sky During Market Meltdown

A serious Ether investor has suffered a staggering $106 million loss after being liquidated on the decentralized finance (DeFi) lending platform Sky, as the worth of Ethereum (ETH) plunged sharply on April 6.

In response to data from Maker Vaults explorer DeFi Discover and blockchain tracker Lookonchain, the investor, also known as a “whale” because of the measurement of the place, noticed 67,570 ETH liquidated after the asset’s value dropped by practically 14%.

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ETH Value Drop Pushes Whale’s Collateral Beneath Threshold, Triggering $106M Liquidation

The liquidation occurred on Sky, previously often known as MakerDAO, which rebranded in August 2023. Sky permits customers to borrow its stablecoin, DAI, by locking in crypto belongings like ETH as collateral.

To make sure stability, the platform requires an overcollateralization ratio—usually 150% or extra—which means that to borrow 100 DAI, a consumer should deposit no less than $150 value of ETH. When the collateral ratio drops under the required threshold, the system mechanically initiates liquidation.

On this whale’s case, the collateral ratio fell to 144% amid the ETH value decline, triggering the liquidation course of. The protocol seized the ETH and initiated an public sale to get well the borrowed DAI, together with charges. Any remaining collateral is returned to the consumer as soon as the debt is repaid.

One other giant place may additionally be in danger. On-chain information platform Spot On Chain reported {that a} separate whale who had deposited practically 57,000 wrapped ETH (value round $91 million) was on the point of liquidation.

A whale who equipped 56,995 $WETH ($90.8M) to borrow $DAI on #Maker is on the verge of liquidation, with a liquidation value of $1,564.58.

Earlier in the present day, one other big whale was already liquidated for 67,569 $ETH ($106M) at $1,650 to repay a $74.49M mortgage as the worth plunged!… pic.twitter.com/1GGSJjmmRI

— Spot On Chain (@spotonchain) April 7, 2025

The broader sell-off within the crypto market adopted U.S. President Donald Trump’s announcement of sweeping tariffs, which rattled investor sentiment throughout all asset courses.

ETH plummeted 14.5% prior to now 24 hours, buying and selling at $1,547 on the time of writing—its lowest since October 2023, when the market was nonetheless reeling from the FTX collapse.

Ethereum is presently down 68% from its 2021 all-time excessive. Continued value drops might place extra DeFi debtors prone to liquidation until they add extra collateral.

In response to CoinGlass, practically 320,000 merchants have been liquidated over the previous 24 hours, totaling greater than $1 billion in losses. Most of those liquidations have been tied to Bitcoin and Ethereum positions.

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Crypto Markets Slide As Tariff Shock Spurs Excessive Worry Amongst Traders

Cryptocurrency costs fell sharply on April 6 as U.S. inventory futures plummeted following the Trump administration’s announcement of sweeping international tariffs.

All nations have been hit with a ten% baseline tariff, with China, the EU, and Japan going through even steeper charges. Bitcoin dropped over 6%, and Ether fell greater than 12%, dragging the full crypto market cap down 8% to $2.5 trillion.

Whereas costs started to get well barely—Bitcoin rising to $78,500 and Ether to $1,594—market sentiment remained grim. The Crypto Worry & Greed Index posted a rating of 23 on April 7, signaling “excessive worry” as traders brace for additional volatility.

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