A major Ether investor has suffered a staggering $106 million loss after being liquidated on the decentralized finance (DeFi) lending platform Sky, as the price of Ethereum (ETH) plunged sharply on April 6.
According to data from Maker Vaults explorer DeFi Explore and blockchain tracker Lookonchain, the investor, often referred to as a “whale” due to the size of the position, saw 67,570 ETH liquidated after the asset’s price dropped by nearly 14%.
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ETH Price Drop Pushes Whale’s Collateral Below Threshold, Triggering $106M Liquidation
The liquidation occurred on Sky, formerly known as MakerDAO, which rebranded in August 2023. Sky allows users to borrow its stablecoin, DAI, by locking in crypto assets like ETH as collateral.
To ensure stability, the platform requires an overcollateralization ratio—typically 150% or more—meaning that to borrow 100 DAI, a user must deposit at least $150 worth of ETH. When the collateral ratio drops below the required threshold, the system automatically initiates liquidation.
In this whale’s case, the collateral ratio fell to 144% amid the ETH price decline, triggering the liquidation process. The protocol seized the ETH and initiated an auction to recover the borrowed DAI, including fees. Any remaining collateral is returned to the user once the debt is repaid.
Another large position may also be at risk. On-chain data platform Spot On Chain reported that a separate whale who had deposited nearly 57,000 wrapped ETH (worth around $91 million) was on the brink of liquidation.
A whale who supplied 56,995 $WETH ($90.8M) to borrow $DAI on #Maker is on the verge of liquidation, with a liquidation price of $1,564.58. Earlier today, another giant whale was already liquidated for 67,569 $ETH ($106M) at $1,650 to repay a $74.49M loan as the price plunged!… pic.twitter.com/1GGSJjmmRI
— Spot On Chain (@spotonchain) April 7, 2025
The broader sell-off in the crypto market followed U.S. President Donald Trump’s announcement of sweeping tariffs, which rattled investor sentiment across all asset classes.
ETH plummeted 14.5% in the past 24 hours, trading at $1,547 at the time of writing—its lowest since October 2023, when the market was still reeling from the FTX collapse.
Ethereum is currently down 68% from its 2021 all-time high. Continued price drops may place more DeFi borrowers at risk of liquidation unless they add more collateral.
According to CoinGlass, nearly 320,000 traders were liquidated over the past 24 hours, totaling more than $1 billion in losses. Most of these liquidations were tied to Bitcoin and Ethereum positions.
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Crypto Markets Slide As Tariff Shock Spurs Extreme Fear Among Investors
Cryptocurrency prices fell sharply on April 6 as U.S. stock futures plummeted following the Trump administration’s announcement of sweeping global tariffs.
All countries were hit with a 10% baseline tariff, with China, the EU, and Japan facing even steeper rates. Bitcoin dropped over 6%, and Ether fell more than 12%, dragging the total crypto market cap down 8% to $2.5 trillion.
While prices began to recover slightly—Bitcoin rising to $78,500 and Ether to $1,594—market sentiment remained grim. The Crypto Fear & Greed Index posted a score of 23 on April 7, signaling “extreme fear” as investors brace for further volatility.
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Key Takeaways
- A DeFi whale was liquidated for $106 million on Sky after Ethereum’s price plunged nearly 14%.
- The liquidation was triggered when the investor’s collateral ratio dropped below the 150% threshold required by the platform.
- Market-wide fear intensified following Trump’s sweeping tariffs, leading to over $1 billion in crypto liquidations and extreme investor sentiment.
The post DeFi Whale Sees $106 Million In ETH Liquidated On Sky During Market Meltdown appeared first on 99Bitcoins.
