{"id":840621,"date":"2025-04-11T19:13:04","date_gmt":"2025-04-12T00:13:04","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/11\/as-eth-slide-continues-exec-says-further-decline-will-result-in-336-million-defi-sell-off\/"},"modified":"2025-04-11T19:13:04","modified_gmt":"2025-04-12T00:13:04","slug":"as-eth-slide-continues-exec-says-further-decline-will-result-in-336-million-defi-sell-off","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/11\/as-eth-slide-continues-exec-says-further-decline-will-result-in-336-million-defi-sell-off\/","title":{"rendered":"As ETH Slide Continues, Exec Says Further Decline Will Result in $336 Million DeFi Sell-Off"},"content":{"rendered":"<p>Bitcoins <\/p>\n<div>\n<div id=\"blockquote-block_2d5b89eaee71010fddf0826e7550c728\">\n<ul>\n<li aria-level=\"1\"><span>Ethereum is under pressure due to leadership issues, stalling adoption, and declining on-chain metrics, casting aspersions on its dominance in the DeFi space.<\/span><\/li>\n<li aria-level=\"1\"><span>Ethereum\u2019s value has dropped 52% over the past year, with a potential further decline if liquidations occur.<\/span><\/li>\n<li aria-level=\"1\"><span>A significant $130 million ETH-backed loan in Sky is causing concerns, highlighting the volatility and risk in crypto-backed loans.<\/span><\/li>\n<li aria-level=\"1\"><span>Kevin Rusher suggests integrating real-world assets into Ethereum\u2019s DeFi ecosystem to mitigate overleveraging and potential liquidations.<\/span><\/li>\n<\/ul>\n<\/div>\n<p>Amid the crypto market\u2019s broader struggles, one project in particular is feeling the pinch.<\/p>\n<p><a href=\"https:\/\/cryptonews.com.au\/news\/eth-price-plummets-as-testnet-issues-threaten-pectra-upgrade-127765\/\">Ethereum is not having a good time<\/a>.<\/p>\n<p>Bitcoin\u2019s commander-in-chief has slipped to under US $2,000 (AU $3,181) following a 15% slide in the past week.<\/p>\n<p><a href=\"https:\/\/cryptonews.com.au\/news\/ethereum-leadership-spill-executive-director-to-step-down-amid-community-criticism-126494\/\">Leadership struggles<\/a>, stalling adoption and on-chain metrics slipping has seen <a href=\"https:\/\/cryptonews.com.au\/category\/ethereum\/\">Ethereum\u2019s<\/a> future as the king of DeFi brought into question.<\/p>\n<p>Luckily, for now, most major competitors aren\u2019t exactly stealing the spotlight \u2013 but if and when the bearish sentiment turns, Ethereum will have its work cut out for it.<\/p>\n<p>And if it doesn\u2019t succeed, some analysts believe hundreds of millions of dollars will bleed from the DeFi ecosystem.<\/p>\n<p><strong>Related: <\/strong><a href=\"https:\/\/cryptonews.com.au\/news\/bitcoin-dip-to-us75k-possible-after-eu-returns-fire-on-tariffs-127768\/\"><strong>Bitcoin Dip to US$75K Possible After EU Returns Fire On Tariffs<\/strong><\/a><\/p>\n<h2 id=\"h-a-market-contagion-of-liquidations-could-be-on-the-horizon-if-this-happens\">A Market Contagion of Liquidations Could be on the Horizon if This Happens<\/h2>\n<p>The ETH sell-off could only just be getting started.<\/p>\n<p>According to Kevin Rusher, Founder of the RAAC lending platform, approximately US $136m (AU $216m) worth of loans could be liquidated if Ether drops below US $1,857 (AU $2,950).<\/p>\n<p>This could exacerbate an already dire situation for Ethereum, which has fallen 52% in value over the past 12 months.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXc2_ZWDkbVuIEP8b_w7gI7fPuKGiYjkkohUCilV6q-aAyyBqugnmwWk_ZJEqT414tbneZ8yWYTybHrQD9qvZ5ZrylyskDKjbUoZFQu7GwcBaMJbP8iWrBWB0QNZ5KXgoxdlt68X?key=LTmMQRWSdImXmHaK9QnGT_Iw\" alt data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/figure>\n<p>If the liquidations come through, it\u2019s possible ETH could drop as low as US $1,500 (AU $2,382) \u2013 a further 20% fall from its current lows.<\/p>\n<p>Like a contagion, this drop could cause yet <em>another <\/em>mass liquidation among DeFi borrowers, to the tune of US $336m (AU $533m).\u00a0<\/p>\n<p>\u00a0Sky Loan Causing Headaches, Rusher Calls for RWA Integration<\/p>\n<p>The RAAC chief suggests that much of the potential liquidations can be traced back to a single loan.\u00a0<\/p>\n<div id=\"blockquote-block_9f72f0e41e20a4997284cd749f5143a7\">\n<p><em>The main catalyst of this crisis is a single $130m ETH-backed loan in Sky, formerly Maker, which is on the verge of collapse despite the borrower scrambling to add more collateral. Every cycle, crypto-backed loans suffer from extreme volatility, leading to cascading liquidations that crash the price of assets.<\/em><\/p>\n<p><img decoding=\"async\" data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" src=\"https:\/\/cdn.cryptonews.com.au\/2025\/03\/14153138\/Kevin-Rusher-Founder-of-RAAC.png\">        Kevin Rusher, Founder of RAAC    <\/p>\n<\/div>\n<p>To counter the issue of overleveraging and the resultant liquidations, Rusher argued that Ethereum\u2019s DeFi ecosystem should dig deeper into real-world assets \u2013 such as precious metals and debt contracts \u2013 as safer investments.\u00a0<\/p>\n<\/p><\/div>\n<p> Ben Knight <a href=\"https:\/\/cryptonews.com.au\/news\/as-eth-slide-continues-exec-says-further-decline-will-result-in-336-million-defi-sell-off-127798\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum is under pressure due to leadership issues, stalling adoption, and declining on-chain metrics, casting aspersions on its dominance in the DeFi space. Ethereum\u2019s value has dropped 52% over the past year, with a potential further decline if liquidations occur. A significant $130 million ETH-backed loan in Sky is causing concerns, highlighting the volatility and<\/p>\n","protected":false},"author":1,"featured_media":840622,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22823,25527],"tags":[11476],"class_list":["post-840621","post","type-post","status-publish","format-standard","has-post-thumbnail","category-continues","category-slide","tag-bitcoins"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/840621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=840621"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/840621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/840622"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=840621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=840621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=840621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}