A major Ether whale lost over $100 million after the price of Ethereum nosedived on April 6. The investor, who had locked 67,570 ETH — worth roughly $106 million — into the DeFi lending platform Sky, was liquidated. This comes as ETH plunged nearly 18%, sending shockwaves through the decentralized finance ecosystem. Whale Wipeout Stuns DeFi as Ether Freefalls Sky, formerly known as Maker , operates by allowing users to borrow its DAI stablecoin by depositing crypto as collateral — primarily ETH. To safeguard the system, Sky requires an overcollateralization ratio of at least 150%, meaning users need to pledge $150 worth of ETH for every 100 DAI they borrow. But when Ether’s price sharply dropped , this whale’s collateral ratio slipped to 144%. That small margin was enough to trigger an automated liquidation, leading Sky to seize and auction the collateralized ETH to cover the outstanding debt and fees. The event was flagged by both DeFi Explore and Lookonchain, and has since become the talk of the DeFi world. Another whale, who had posted nearly 57,000 wrapped ETH — valued around $91 million — was reportedly on the brink of liquidation as well, according to Spot On Chain. The fear now is that a continued decline in ETH could lead to a domino effect across other leveraged positions. Market Braces for More Pain Ether’s price tumbled to $1,547 at its lowest point — a level not seen since October 2023. The broader market sentiment was battered by fears of a looming recession , following President Donald Trump’s sweeping new tariffs on global trade partners. The crypto crash mirrors the bloodbath in traditional markets, where nearly $6.6 trillion in value was erased over two days. ETH is now down 70% from its 2021 all-time high, and analysts warn that without fresh capital or collateral injections, more DeFi borrowers risk being liquidated. According to data from CoinGlass, over 320,000 traders were liquidated in the past 24 hours, wiping out close to $1 billion — the majority of those losses tied to Ether positions. The post $100M Ether Whale Liquidated as Trump’s Tariffs Trigger Market Meltdown appeared first on TheCoinrise.com .
