Data: "High-risk" crypto loans surge to a two-year high

ChainCatcher news, according to data from IntoTheBlock, 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 within a 5% liquidation price mean that if the collateral price drops by 5%, it will no longer cover the loan, triggering a liquidation.

IntoTheBlock stated in a market update: "Massive liquidations could affect the value of collateral, putting more loans at risk of liquidation, leading to a price spiral decline."