Following the recent debt settlements by Celsius, the crypto lender might not face liquidation, even as investors are optimistic about withdrawals soon.
Celsius’s risks of being liquidated have decreased as the firm actively repays its outstanding debt. Since July 1, Celsius has paid off over $142 million of the loan, lowering the wBTC liquidation price from $11,800 to $4967 in less than 24 hours.
Investor mood appears to be improving as outstanding debt has been greatly decreased. People believe that if Celsius repays the majority of the remaining debt on AAVE, Compound, and Maker, withdrawals will restart soon. Furthermore, the organization continues to offer weekly awards to its clients.
Celsius’ wBTC liquidation price has decreased to $4967 in its multi-collateral DAI vault 25977, according to DeFi Explore data, after the business has paid about $142 million for its Maker loan since July 1. The collateralization ratio has now risen to 589 percent, with $483 million in BTC locked in.
According to publicly available information, Celsius has an outstanding loan of approximately $600 million from Maker, Compound, and Aave. Celsius, meanwhile, has not provided any information on its financing. Furthermore, the extent of its non-DeFi exposure is unknown.
The business loaded off its large loans in numerous transactions on July 4. Celsius repaid 50 million USDC on its AAVE debt to withdraw 459K LINK from AAVE, as well as $13 million on its Compound loan.
Celsius repaid $6.2 million, $50 million, and $64 million in DAI to its Maker loan on Monday. Maker is still owed $82 million by the cryptocurrency lender. It has $1.8 billion in investments and $650 million in losses.
Meanwhile, the crypto lender transferred 30,000 ETH from Aave and 37,000 ETH from Compound to other addresses. The Ethereum worth $72 million was transmitted to numerous wallets, as is customary before dumping.
Analyst at DeFi According to DeFiyst, the company could become solvent soon. He stated:
“On the current trajectory, Celsius Network will have sold the majority of their collateral and paid down most of the debt very soon. The question then becomes whether they sell stETH (or CEL) on the open market (or provide some confirmation for the rumor that they sold stETH OTC).”
Celsius (CEL) token prices have risen above $1 as a result of the community-led short squeeze. Prices have risen over 60% in July as short-sellers benefit from short-selling CEL tokens.
Celsius also withdrew 1.80 million CEL tokens from FTX. CEL prices have risen by 12% in the last 24 hours.
