Ethereum (ETH) is hitting new lows, with two major participants on the Maker DeFi platform nearing liquidation. A further drop in the price could lead to a significant $238 million position wipeout.
Situation with Major Positions on Maker
On the Maker DeFi platform, two major participants are nearing a nine-digit liquidation. If Ethereum (ETH) loses another 4% in value, $238 million in long positions will be wiped out. The analysis by Lookonchain reveals that two whales have pledged 125,603 ETH as collateral for borrowing Dai (DAI). With current ETH prices at $1,874, their positions are perilously close to the liquidation levels of $1,805 and $1,787 per token.
Investor Pessimism Surrounding Ethereum
The ETH/BTC rate has dropped to 0.02246, marking the lowest point since May 2020. This has fueled increasing pessimism among investors. Ethereum is on track to finish one of its worst quarters in years, having lost 6.3% over the past week and over 44% year-to-date.
Expert Opinion from Lekker Capital
Quinn Thompson from Lekker Capital has shared his thoughts on Ethereum's current state. He believes that Ethereum's potential as an investment instrument is completely exhausted: 'A $225 billion market now seeing declines in transaction activity, user growth, and revenues. It's a network for utility, not for investment.' Quinn Thompson also pointed out the disparity between ecosystem growth and the value accrual to Ethereum’s core asset.
The current state of the Ethereum market is raising concerns among investors with significant positions on DeFi platforms. The slowed growth and increased liquidation risks intensify the pessimism regarding the asset's future prospects.
