Crypto Leverage Don Skyrocket to $53B, E Spark $1B Liquidations
For Q2, crypto leverage rise sharp by 27% reach $53.1B, na di highest since early 2022. Dis one show say DeFi lending strong and people dey risk more. Bitcoin last time drop from $124K to $118K cause more than $1B long liquidations, e be the biggest since August. Stress point dem dey for DeFi lending: for Aave, ETH borrowing rates just pass staking yields small, e disrupt looping trades and make Ethereum Beacon Chain exit queue reach record 13 days. Off-chain USDC funding cost high reach late-2024 level, e mean say dollar liquidity no balance. Even though Bitcoin ETF inflows strong, these leverage trends and DeFi liquidity wahala show market no too stable. Traders suppose balance the good ETF momentum with the growin liquidation risk dem. Short-term wahala fit increase as leverage dey unwind, but long-term look good if stress factors clear.
Neutral
While Bitcoin ETF money dey gbe market gidigba, the big increase for crypto leverage and new DeFi liquidity wahala dey raise chance say more liquidations and wahala fit happen. For short time, price fit fall as people dey close their leveraged positions, but the strong demand for Bitcoin ETFs from big institutions still show say market go get support for medium to long term. How these factors dey work together show say market balance dey, no be clear say e go go up or down sharply.