Crypto Liquidations Hit $271 Million, What’s Going On?

by

As a seasoned researcher with years of experience navigating the volatile crypto market, I can’t help but feel a sense of deja vu when I see these liquidation figures. It seems like we’ve been here before, and yet, each time, I find myself holding my breath, waiting for the market to stabilize.

Despite the market seemingly on a rebound, statistics from CoinGlass show a contrasting narrative, with total liquidations reaching an unprecedented $271 million this week – the highest yet. This surge in liquidations involves well-established cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and up-and-coming projects like NEIRO.

Crypto liquidation by numbers

Based on recent figures, it appears that Ethereum is dominating the cryptocurrency liquidation market, with a total of approximately $72.97 million in losses. Long-term ETH traders have been hit hardest due to the unexpected reversal in price trend. The prediction of a continuous upward movement faltered when the value dipped from its peak of $2,605 down to its current value of $2,542.01.

Based on the data at hand, long bitcoin traders suffered a loss of around 56.58 million dollars, while short traders experienced a loss of roughly 16.4 million dollars. In addition, there was a significant liquidation event totaling 56.55 million dollars, with long traders contributing approximately 28.62 million dollars to this amount.

The market turbulence resulted in approximately $10.12 million being withdrawn from Solana through liquidations and nearly $6.49 million of NEIR being sold off. Notably, data from CoinGlass reveals that meme coins, specifically Shiba Inu (SHIB), have minimal involvement, as their liquidation amounts to less than $1 million.

When rebound?

As an analyst, I’ve noticed that the numerous ongoing activities within our internal crypto ecosystem are diverting our collective attention away from crypto liquidations. For example, Ethereum has been generating quite a buzz due to its promising ecosystem upgrades.

At present, Ethereum gas fees have significantly decreased, making the network exceptionally user-friendly. Importantly, this could stimulate increased transaction activity on the platform, potentially driving up Ether purchases and, ultimately, causing a price increase.

Vitalik Buterin has recently discussed fresh strategies for expanding the overall protocol. In his latest communication, he revealed details about a system called ‘The Verge’, which aims to move node operations to smartphones, thereby making it easier for a larger number of individuals to join the network.

Read More

2024-10-24 13:46