With 1244 liquidations in the last four days, the NFT space may be witnessing its worst liquidation yet.

A recent report by Cirrus NFT said that the numbers do not even include forced liquidations, such as those that used their NFTs as collateral for loans.

He, however, inferred that the worst case scenario may be over for the NFT space. His reason is that most of the loan-tied liquidations have been completed. 

“For reference, on an average day over the last year, you’d see 10-15 NFT loans liquidated. Beanz was hit the hardest, with 636 of them—over 3% of their supply. The good news is that the rate of liquidations has slowed drastically over the last few hours, and there aren’t a crazy amount of underwater loans left. I think we’re done with those sharp one day moves down that we’ve seen over the last few days,” he wrote.

The NFT space didn’t see this coming, as many thought that it was a good idea to use their collectibles as collateral for loans. Just one hour after the Azuki announcement, the number of underwater loans on Blur, the NFT marketplace rose from 0 to 140.