TechFlow reports that the total monthly liquidation volume in Ethereum's on-chain lending markets reached $436 million in August, marking the second-highest level in history.
Among this, Aave accounted for $289 million, or approximately 66% of the liquidations.
This figure ranks only below the record $671 million liquidation volume set in May 2021. The primary driver behind such high liquidations was ETH’s price decline of 22% month-on-month in August, with a maximum drop reaching 35%.
Since ETH is widely used as collateral on DeFi lending platforms, especially on Aave, the price drop significantly reduced the value of collateral, triggering a wave of liquidations.
Not only were on-chain lending markets affected, but the overall downturn in the cryptocurrency market also led to more than $150 million in liquidations of 7-day futures long positions.
