Celsius’s bankruptcy-induced liquidation plans could pressure overall crypto market: Kaiko

Bankrupt lender Celsius’s plan to liquidate its altcoins for Bitcoin (BTC) and Ethereum (ETH) could exert much unit connected the crypto market, according to a July 10 report from blockchain analytical steadfast Kaiko.

Kaiko noted that astir altcoins held by Celsius had recorded important drops, ranging from 6% to arsenic precocious arsenic 84%, successful their liquidity implicit the past year.

“The aggregated marketplace extent for Celsius’ altcoin holdings has declined by 40% since 2022, totalling astir $90mn successful aboriginal July.”

Per the illustration below, lone Litecoin (LTC), Bitcoin Cash (BCH), Polygon (MATIC), and Aave (AAVE) saw pronounced changes successful their liquidity situations implicit the past year, portion others mostly declined.

Source: Kaiko

BCH and LTC, successful particular, saw a surge successful their liquidity concern aft EDX, a crypto speech backed by accepted fiscal institutions, enabled enactment successful June.

The crypto institution further noted that Celsius’s full altcoin holding exceeded $90 million, “which means it volition beryllium hard for the institution to liquidate without incurring precocious terms slippage.” It added:

“More than 60% of altcoin marketplace extent is concentrated connected Binance and different off-shore exchanges portion 30% is connected U.S. exchanges.”

CEL token liquidity is astir non-existent

According to Kaiko, Celsius faces a occupation arsenic determination is astir nary liquidity for its astir important altcoin holding, CEL.

CEL is Celsius’s autochthonal token, accounting for astir 65% of the bankrupt firm’s full altcoin holdings.

“There is virtually nary liquidity for CEL arsenic measured by marketplace depth, which has collapsed to conscionable $30k, concentrated mostly connected OKX and Bybit.”

Source: Kaiko

Since Celsius filed for bankruptcy, the lender’s autochthonal token has seen waned interest, with its worth dropping to nether $1 aft peaking astatine implicit $8 successful 2021, according to CryptoSlate’s data.

The station Celsius’s bankruptcy-induced liquidation plans could unit wide crypto market: Kaiko appeared archetypal connected CryptoSlate.