A record-high $115 million in decentralized finance (DeFi) lending positions were wiped out Tuesday after the price of ether continued to correct to as low as $1,406 on Tuesday. The cryptocurrency has shed 9% in the past 24 hours, according to the CoinDesk 20.
Compound Finance saw the largest number of liquidated positions with some $86 million, or 75% of the total liquidations coming from that platform, according to data provider DeBank.
MakerDAO followed in a distant second with some $10 million in liquidations, or 8% of the total. Aave v1 and v2 combined for a total of $13 million, or 11% in liquidations.
Historically high gas fees may be one reason mass liquidations are taking place on the lending platforms. The cost of an average transaction set records yet again Tuesday with new highs of $39 for a basic ether transaction, according to data provider Blockchair. For many loans, forcing a liquidation by not closing or topping off the position may end up being cheaper due to high transaction costs.