A Ethereum whale on the decentralized finance (DeFi) lending platform Sky, formerly Maker, has been liquidated

This whale lost 67570 ETH, valued at approximately $106 million, following the sharp decline in the price of Ethereum (ETH).

An Ethereum whale on the decentralized finance (DeFi) lending platform Sky, formerly Maker, has been liquidated following the crash of the price of Ethereum (ETH).

The whale lost 67,570 ETH, valued at approximately $106 million, following the sharp decline in ETH’s market price.

The downfall of the whale came as ETH’s price dropped 14% to hit $1,560 on April 6, dragging the collateral ratio of their position down to 144%.

Unable to maintain the necessary buffer, Sky liquidated the entire 67,570 ETH stash, wiping out over $106 million in value.

Notably, Sky operates as a DeFi lending platform where users can deposit cryptocurrency like ETH as collateral to borrow DAI, a stablecoin pegged to the US dollar.

To mitigate the risks posed by crypto’s volatility, Sky enforces an overcollateralization requirement. This means borrowers must lock up significantly more value in ETH than the DAI they borrow.

However, when collateral values dip below this threshold, the system triggers liquidation, seizing the assets to repay the loan.

The whale’s liquidation is part of a larger trend in the crypto market, which has seen 441,856 traders liquidated over the past 24 hours.

The total liquidations come to $1.36 billion, according to data from Coinglass.

The liquidations follow double-digit losses by cryptocurrency heavyweights like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE).

Bitcoin price drops below $75,000

Bitcoin slipped below the $75,000 mark on Monday, extending the rout in crypto markets amid fresh U.S. tariffs and Donald Trump’s ‘Liberation Day’ address.

The world’s largest cryptocurrency slid 8.5% in the past 24 hours to $74,144 by 01:13 ET (05:13 GMT), putting it down 14% from a 2024 high hit on April 5.

Trump’s tariffs and threats of global retaliatory tariffs were fanning the flames of economic unease.

The tariffs have triggered a sell-off in traditional stock markets, which in turn is spilling over into crypto as investors flee riskier assets.

The move comes amid mounting fear of a looming financial crisis, which has only deepened the gloom enveloping digital currencies.

Analysts are scrambling to map out what lies ahead, with Charlie Sherry, market analyst at BTC Markets, noting that Bitcoin lost its $79,000-$80,000 support zone, leaving $72,000—the pre-election high—as the next critical floor.

“A break of $72,000 could open the way for further weakness toward the $60,000-$62,000 zone, which offered support in August and September 2023,” Sherry explained.

The sharp BTC price drop also saw a wrapped Bitcoin whale get liquidated four times, losing over $19 million in less than 50 days.

Another major player, holding 56,995 wrapped ETH worth roughly $91 million, is also at risk of liquidation on lending platform Sky.

The overcollateralization ratio for the loan dropped to 1x on Monday, putting the entire 67,570 ETH stash in jeopardy to repay the borrowed DAI.

However, the collateral ratio recovered slightly to 1.1x by 07:00 ET (11:00 GMT) after ETH rebounded slightly in early morning trading.

According to reports, the lending platform, previously known as MakerDAO, allows users to deposit ETH to mint DAI, a stablecoin pegged to the U.S. dollar, with the requirement to maintain an overcollateralization ratio above 1x to avoid liquidation.

But with the recent sharp drop in ETH’s market price, the collateral ratio of the whale’s position dipped below 1x, triggering the liquidation.

The move follows a 14% crash in ETH’s market price on Monday as traders reacted to Trump’s ‘Liberation Day’ and threats of global retaliatory tariffs.

The setback comes after a strong rally in crypto markets this year, driven by optimism over a U.S. economic recovery and potential de-dollarization.

Recently, traders ramped up bets on Federal Reserve intervention to avert a U.S. recession, a step that could pump liquidity into the system and offer crypto a lifeline.

However, with the crypto market melting down and traditional markets also poised for a rough Monday, according to Geoffrey Kendrick from Standard Chartered, the outlook remains bleak.

Still, glimmers of hope persist. Sherry suggests that a reversal