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

BlockBeats news, October 18, according to IntoTheBlock data, the total amount of high-risk loans (defined as loans within 5% of the liquidation price) rose to US$55 million on Wednesday, reaching the highest level since June 2022. Loans within 5% of the liquidation price mean that if the price of the collateral falls by 5%, it will no longer cover the loan, triggering liquidation.

IntoTheBlock said in a market update: "Massive liquidations may affect the value of collateral, exposing more loans to liquidation risks, causing a downward price spiral."