Tron (TRX) founder Justin Sun drew attention to the excessive leverage problem in the Ethereum ecosystem in his post from the X account.
Justin Sun addressed the Ethereum leverage issue and called for proactive measures.
Sun noted that excessive leverage should be brought under control rather than waiting for a crash that could wreak havoc on Ethereum protocols and decentralized finance (DeFi) projects.
He emphasised the need for early intervention and a coordinated solution.
Many investors are increasingly using leverage of up to 50x (sometimes 100x) when trading ETH on major platforms. This high leverage also leads to excessive liquidation risks when price volatility increases.
“In the short term, Ethereum also needs to address the widespread leverage issue.
“It would be better to intervene early and unwind some of the leverage rather than wait for the protocols and DeFi projects to crash, causing losses. A negotiated solution is recommended.”
https://twitter.com/justinsuntron/status/1899391401672216839
*This is not investment advice.
