The liquidity crisis of cryptocurrency lending platforms poses significant knock-on risks to the market. It may lead to a sharp sell-off of collateral assets, causing cryptocurrency prices to plummet. Investors' confidence will be hit hard, triggering large-scale withdrawals from exchanges. This can also result in the bankruptcy of related institutions and exacerbate market panic. Moreover, it might prompt stricter regulatory scrutiny, further suppressing market activity and increasing overall market volatility.