Aave's High-Risk Loans Decrease Amid Market Volatility

According to Odaily, data from IntoTheBlock reveals that since the significant liquidation event on February 3, high-risk loans on Aave's mainnet have decreased by nearly $1 billion, with a noticeable decline in liquidation volumes. Despite the current market experiencing greater volatility compared to February, which theoretically should lead to more forced liquidations, the actual liquidation volume has significantly reduced. This phenomenon can be partly attributed to previous forced liquidations, but a more crucial factor is the shift in overall market sentiment. Many large position holders have begun adopting more cautious strategies, actively deleveraging to reduce risk exposure and address potential price pressures and market uncertainties.