During the first half of April, there was an increase in liquidations of Ethereum-based loans, coinciding with a moderate recovery in crypto prices following a recent sell-off. Ethereum loans particularly experienced a significant portion of the liquidation activity.

According to data from The Block's dashboard, approximately $80 million worth of liquidations occurred on the Aave lending protocol, while Compound saw nearly $50 million in liquidations, marking a substantial portion of the total liquidation volume.

A similar scenario occurred back in June 2022, coinciding with the breakdown of the $40 billion Terra ecosystem.

The significant drop in the price of CRV tokens nearly led to the liquidation of Curve founder Michael Egorov's loan, although this was ultimately avoided. Egorov mentioned plans to reduce his exposure, as reported by The Block.

Traders and lenders have faced increasing liquidation pressure recently, following a surge in unsuccessful bets during Bitcoin's recent downturn from its recent peak.

According to CoinGlass data, crypto liquidations totaled $1.7 billion over the past three days, primarily driven by the significant impact of liquidations on the surge in betting activity.