Specifically, most of the altcoins held by Celsius have experienced significant liquidity decreases, ranging from 6% to a maximum of 84%, over the past year.
The chart below illustrates notable changes in liquidity for Litecoin (LTC), Bitcoin Cash (BCH), Polygon (MATIC), and Aave (AAVE), while most other cryptocurrencies have experienced decreases.
Celsius holds over $90 million in total value of altcoins, implying potential difficulties in liquidating without experiencing significant price slippage.
Celsius also faces a major challenge with its native token, CEL, which has limited liquidity despite accounting for 65% of the total altcoins held by the company.
Since Celsius filed for bankruptcy, CEL has gradually lost community interest and its token price has dropped below $1 after reaching a peak of over $8 in 2021.