Data: ‘Risky’ crypto loans surge to highest level in two years

According to IntoTheBlock data, the total amount of high-risk loans (defined as loans with a liquidation price within 5%) rose to $55 million on Wednesday, reaching the highest level since June 2022. Loans with a liquidation price within 5% mean that if the price of the collateral drops by 5%, it will no longer cover the loan, triggering liquidation.IntoTheBlock stated in a market update, "Large-scale liquidation could impact the value of collateral, causing more loans to face liquidation risk and resulting in a spiral of price declines."