Data shows that due to the collapse of altcoins like Dogecoin and XRP, the cryptocurrency market experienced significant liquidations in the past day.
The cryptocurrency derivatives market has just experienced a large-scale long liquidation.
According to CoinGlass, there have been significant liquidations in the cryptocurrency derivatives space over the past 24 hours.
Here, 'liquidation' refers to the forced closure of a contract when the betting on any open contract fails and accumulates a certain level of loss (the specific amount may vary by platform).
Below is a table breaking down the liquidation-related figures from the past day.
It can be seen that the total liquidation amount related to cryptocurrencies in the past day reached $1.56 billion. Among them, the liquidation of long holders accounted for the vast majority, with the related amount reaching $1.39 billion, nearly 90% of the total. The reason for this large-scale liquidation lies in the collapse of the altcoin market, with many well-known currencies like XRP and Dogecoin experiencing double-digit declines in price.
Many traders appear to have established bullish positions in the market, expecting the momentum brought by Bitcoin's recent surge to continue. Notably, BTC successfully kept losses under 2%, but other parts of the market clearly were not so fortunate.
Regarding the assets that led to the most liquidations, the heatmap below provides a detailed display.
Generally, Bitcoin is usually the leader in market liquidations, but in terms of market capitalization, Ethereum is the second-largest cryptocurrency, contributing the most to liquidations at $229 million.
Following a $173 million liquidation of Bitcoin, Dogecoin and XRP experienced liquidations of $88 million and $68 million, respectively. The large-scale liquidation of these cryptocurrencies may be related to their popularity and the significant price drops they experienced.
Recently, speculative activities within the industry seem to be very active, with total liquidations of small-cap assets (marked as 'Others' in the heatmap) reaching $496 million.
