PANews reported on March 4 that according to The Block, in February, the Ethereum lending market experienced the worst liquidation event in 12 months, with nearly $500 million in collateral liquidated. This is the second highest monthly liquidation amount in DeFi history, second only to the $670 million liquidation during the market crash in May 2021. The surge in liquidations coincided with a sharp drop in the market value of the entire cryptocurrency market, triggering a series of forced liquidations. These liquidations were mainly concentrated on the two major lending platforms Aave and Compound, which together handled most of the liquidation volume in February.

While lending protocols are designed to handle liquidations through automated processes, the scale of the February event highlights how quickly market conditions can deteriorate when overall market sentiment shifts. For borrowers, this underscores the importance of maintaining healthy collateralization ratios and sufficient buffers to weather market downturns. Despite the massive volume of liquidations, major lending platforms have demonstrated resilience, operating as designed even under stress. This operational stability represents an important maturity point for DeFi infrastructure, demonstrating that these protocols can handle large-scale deleveraging events without incurring systemic risk.