Ethereum Liquidations Surge: Aave V3 Records Largest Event Since February

A recent market downturn triggered substantial liquidations on Aave V3, with the highest single-day event since February. This surge follows Ethereum’s sharp decline, which saw prices drop over 20% and briefly reach near a multi-year low of $1,680. The DeFi lending platform processed these liquidations efficiently without introducing systemic risk, according to data from Chaos Labs. Experts attribute this volatility to general market instability in the DeFi space. However, the event has also sparked significant investor activity, with some acquiring ETH during the dip.