Aave's high-risk loan volume plummets by $1 billion, while liquidation volume declines against the trend

ChainCatcher news, according to data from IntoTheBlock, since the large-scale liquidation event on February 3, high-risk loans on the Aave mainnet have decreased by nearly $1 billion, and the amount of liquidations has also significantly declined.

It is worth noting that the current market volatility is more severe than in February, which theoretically should lead to more borrowers facing forced liquidations, but the actual liquidation amount has decreased significantly. This phenomenon can be partly attributed to previous forced liquidations, but a more important factor may be the overall shift in market sentiment. Many large holders have begun to adopt more cautious strategies, actively deleveraging to reduce risk exposure in response to potential price pressures and market uncertainty.