Ethereum, the second-largest cryptocurrency by market value, has seen an impressive uptrend in recent months.
Ethereum, the second-largest cryptocurrency by market value, has seen an impressive uptrend in recent months.
Ethereum price rose to new highs, surpassing $4,000 for the second time in history, driven by increased institutional interest as well as expectations regarding the upcoming Dencun upgrade.
Amid this bullish momentum, traders and investors have been closely following Ethereum’s price changes, looking for ways to profit from its upward trajectory. However, the volatile nature of the cryptocurrency market means that luck can change quickly, resulting in substantial gains and losses for market participants.
Against the backdrop of Ethereum’s impressive rise, a liquidation event occurred, which was reported by PeckShield Alert.
A trader, who goes by the alias “nakamotosatoshi.eth”, was using Compound, a decentralized lending platform that allows users to borrow and lend crypto assets through cTokens, which are the primary means of interacting with the Compound Protocol. .
However, when the price of ETH skyrocketed to $4,030, the trader’s collateral became insufficient to cover the amount lent, triggering a liquidation event in which the trader was liquidated for 93.16 million cDAI for a value of 2.13 million dollars.
At the time of writing, ETH was up 2.43% in the last 24 hours to $4,045 after hitting intraday highs of $4,054. Given the recent price rise, ETH is currently 17.47% away from its all-time high of $4,891, reached in November 2021.
Expectations are high as the Dencun upgrade, which aims to incorporate many Ethereum improvement proposals (EIPs), such as EIP-4844, which offers “proto-danksharding”, will go live on Ethereum in the next 48 hours.
Scheduled for March 13, the Dencun upgrade will introduce blobs, which are expected to significantly reduce data availability costs for L2s.
