The cryptocurrency landscape experiences a surge in liquidations as the market endures a correction phase.
In the last 24 hours, data from Coinglass reveals that total crypto liquidations have soared to $160.71 million. Long positions account for the majority of these liquidations, totaling around $127.53 million, as the market undergoes a significant shift in direction.
Coinglass data indicates that only $33.18 million worth of various cryptocurrencies have been liquidated from short positions.
Global crypto open interest has decreased by 2.95% in the past day, currently standing at $69.3 billion.
Leading the pack in terms of liquidations over the past day is Binance, the largest crypto exchange by trading volume, with approximately $75.79 million. Following Binance are OKX, Bybit, and Huobi with $53.91 million, $14.23 million, and $11.32 million in liquidations respectively.
Furthermore, Ethereum (ETH) liquidations have surpassed Bitcoin (BTC), with $27.81 million and $20.36 million respectively.
Recent reports suggest that the approval of spot Ethereum ETFs in the U.S. has led to an increase in the ETH to BTC trader exposure ratio. Prior to this approval, long-term ETH holders had accumulated over 100,000 ETH tokens on May 20.
Notcoin (NOT) has garnered the third position in terms of liquidations, with $6.2 million in the last 24 hours. However, short NOT positions worth $3.77 million have been liquidated, along with long positions totaling approximately $2.43 million, attributed to a 29% price surge of the asset.
The rise in liquidations coincides with a 2% decline in global crypto market capitalization in the past day, dropping from $2.7 trillion to $2.66 trillion according to data from CoinGecko. Daily trading volume has also seen an 8% decrease, currently at $86 billion.
With the dwindling trading volume and open interest, it is anticipated that there will be lower price volatility, especially for major cryptocurrencies.