Celsius Repays $120 Million Worth of DAI to Maker Within 24 Hours

Aaryamann Shrivastava
Updated: Jul 5, 2022, 07:35 GMT+00:00

The cryptocurrency network, which has been struggling to keep itself alive for the past few weeks, is on track to pay back the loan it took from Maker.

Celsius Repays $120 Million Worth of DAI to Maker Within 24 Hours

In this article:

Key Insights:

  • Celsius has repaid about $150 million worth of DAI since the beginning of this month.
  • The network is focused on stabilizing liquidity and operations for now. 
  • CEL on the charts has been outperforming other tokens rising by 68.51% in the last three days.

The crypto market has been eyeing recovery for a while now, and while some tokens are on the path to achieving it, others are yet to set that momentum in motion.

Surprisingly, one of them happens to be Celsius Network’s CEL which, despite being in a dilemma, is managing to reap returns.

Celsius Pays Back

One of the major highlights of this week has been Celsius which kickstarted the month of July by paying back almost $150 million worth of DAI to Maker, the network behind the DAI stablecoin that it borrowed close to $258 million from.

About $120 million of this repayment was paid in the last 24 hours when Celsius sent back DAI in 3 batches of 64 million DAI, 50 million DAI, and 6.2 million DAI.

However, the lending protocol still owes Maker about $82 million worth of DAI in outstanding debt. Recently the DeFi application began facing losses when the broader market conditions started turning bearish.

As the situation worsened, the protocol’s losses furthered, and as a result, despite having a $1.8 billion value invested in the Dapp, it is facing losses equivalent to almost $654 million.

The firm, which has been teetering at the edge of being bankrupt, is still managing to pay out rewards to its users. This is after the protocol paused withdrawals last month in order to prevent deterioration due to depreciating market conditions.

As per the most recent statement from the Celsius team, the network is exploring ways to protect and preserve the assets on its platform. Adding to the same, the statement read,

“…options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues. These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.”

Celsius Is Heating Up on the Charts

While the network is in a bind, its native token, CEL, is not and has managed to channel the market’s bullishness into marking a rally for itself. In the last three days, the altcoin has shot up by 68.51% to trade above $1.

This was helpful in maintaining the 323.66% rally it witnessed in the latter half of June, which was significantly impacted by the 47.75% hit it took in the same week.

In terms of where it can go on from here, while the Parabolic SAR is certainly indicating a downtrend, the Relative Strength Index (RSI) is noting sustained bullishness. Thus, CEL could end up being consolidated, provided the network does not collapse.

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

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