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

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Just as it appears that the market is in recovery mode, the crypto liquidation figures tell a different story. Per data from CoinGlass, the total liquidation has topped $271 million, the highest thus far this week. This crypto liquidation trend encompasses established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and newer projects like NEIRO.

Crypto liquidation by numbers

According to the data, Ethereum is leading the crypto liquidation trend, with a total of $72.97 million lost. ETH long traders suffered the most, as the projection of a sustained uptrend failed to materialize when the price dropped from a high of $2,605 to its current level of $2,542.01.

According to the actual figure, long traders lost $56.58 million, while short traders lost $16.4 million. Bitcoin also saw a massive liquidation totaling $56.55 million, with long traders accounting for approximately $28.62 million of the sum.

The market volatility also saw $10.12 million taken from Solana via liquidation and NEIR sell-offs pegged at $6.49 million. Despite the prominent features of meme coins, the CoinGlass data confirms that assets like Shiba Inu (SHIB) have limited exposure, as their liquidation is worth less than $1 million. 

When rebound?

There are a lot of internal ecosystem activities that are limiting the overall focus on crypto liquidations. Ethereum, for instance, has continued to garner hype concerning ecosystem enhancements.

Currently, the Ethereum gas fee has continued to drop by a wide margin, presenting the network as one that is highly usable. Notably, this has the potential to reboot transactions on the protocol which, in turn, can boost ETH buy-up and, subsequently, fuel the price surge.

Vitalik Buterin has also recently mentioned new plans to scale the protocol overall. In his latest update, he shared insights on The Verge, a system that will shift node operations to mobile phones to enable more people to get into the network.