Daisy Chain-related Magic Daisy's Ethereum position records a loss of $2 million

According to on-chain analysis data, Maji Dage('s Ethereum bullish bets are recording serious losses. As of January 11th, unrealized losses have reached $287,000, which already exceeds $2 million compared to the peak on January 7th. These large-scale losses related to the Dage chain highlight the risks of high-leverage trading strategies once again.

Massive Ethereum Position with 25x Leverage

Maji Dage currently maintains a 25x leveraged long position on approximately 10,800 ETH, worth about $33.62 million. The average entry price was $3,138.43, reflecting optimistic expectations in the Ethereum market at that time. However, as Ethereum’s price recently dropped to around $2.96K, the losses on the position continue to expand.

Unrealized Losses and Leverage Risks

Citing analysis from on-chain analyst Ai Yi), a report by PANews indicates that the scale of these losses demonstrates the dangers of high-multiplier leverage trading beyond mere figures. Comparing the unrealized gains at Ethereum’s peak on January 7th with the current situation shows a stark difference. With 25x leverage, even small fluctuations in the underlying asset can be amplified into significant losses, putting Maji Dage’s position at considerable liquidation risk.

Lessons from the Dage Chain Market

This loss incident involving Maji Dage clearly illustrates the risks of high-leverage trading in the cryptocurrency market, including the Dage chain. With unrealized losses exceeding $2 million, caution is advised regarding price volatility of Ethereum and related projects. Market participants should recognize the importance of risk management over maintaining long-term positions, as exemplified by the Maji Dage case.