CirrusNFT states there have been 1244 liquidations in the last 96 hours. This does not include forced sellers who sold their collateral to pay off loans before they were underwater. This is considered the most catastrophic liquidation in the history of NFT, and it shows no signs of stopping.
Over the last few days, we’ve seen the worst liquidation cascade in the history of NFTs and its not really close
There were 1244 Liquidations in the last 96 hours (This excludes forced sellers that sold their collateral to repay loans before they were underwater)
For reference… pic.twitter.com/3cpy8tDHi5
— Cirrus (@CirrusNFT) July 3, 2023
During this liquidation, the Azuki ecosystem was the hardest hit. With 10-15 NFT loans liquidated, more than 630 Beanz and about 3% of total Beanz NFT liquidated. The good news is that the liquidation rate has slowed significantly in the last few hours, and there are not many loans under water anymore.
Some of the hardest-hit NFT collections originate from the Azuki ecosystem. In the last week, the Azuki, Elemental, and Azuki Elemental Beanz collections have all seen their floor price drop by more than 20% in just 24 hours as they have come under heavy criticism from the community.
Specifically, amid a chaotic market, the popular NFT creator still launched a new collection of Azuki Elemental and quickly collected $38 million in just 15 sales. However, the community feels highly disappointed. Elemental’s new design is generally no different from the original collection, Azuki (released in February 2022), and is accused by the community of defrauding users in the 20,000 ETH reclaim lawsuit announced yesterday.
Since Azuki’s Elemental collection dropped, the Azuki collection overall has dropped below 6 ETH. Furthermore, Bored Ape Yacht Club (BAYC) saw a 16% drop, falling below the 30 ETH mark regarding floor prices. On the other hand, Mutant Ape Yacht Club (MAYC) drops 20%, to less than 5 ETH.
Yuga Labs’ latest crypto game product, HV-MTL, has dropped its floor price sharply. Yuga Labs is also down more than 24% since the beginning of this month.
Source: Opensea
According to a recent update, AzukiDao’s lawsuit has not been taken place, but last night, Azuki DAO’s management token contract was attacked because of a security flaw. The attackers have now extracted 35 ETH. Vulnerability is mainly because lines of code are not thoroughly tested. Currently, the contract has been suspended.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
