Two major Ethereum investors using MakerDAO are at risk of liquidation if ETH falls below $1,800, highlighting current challenges in the DeFi sector.
Overview of the Whales' Situation on MakerDAO
According to Lookonchain and Arkham Intelligence, two major investors have a combined 125,603 ETH worth $238 million at stake. One borrowed $75 million DAI using 60,810 ETH as collateral, with a liquidation threshold at $1,793. The other investor, also under pressure, must carefully navigate the declining ETH value.
Impact of ETH Price Decline on DeFi
The decline in ETH prices resulted in a significant drop in the total value locked (TVL) of DeFi protocols. TVL has fallen to $50 billion from over $66 billion at the beginning of the year, with only a few protocols like Aave and Sky showing growth.
Long-term Prospects for Ethereum
Despite challenges, Ethereum remains a crucial part of the DeFi ecosystem. Analysts express concerns that its issues may persist as competitors gain ground. However, some suggest that Ethereum's ecosystem growth presents new opportunities.
The situation of Ethereum whales on MakerDAO underscores current issues and challenges faced by the DeFi sector amidst falling cryptocurrency prices.
