Altcoin Traders Face Steep Losses as ETH and XRP Lead $625M Crypto Liquidations
Ethereum (ETH) and XRP led the pack in crypto liquidations this week, outpacing even Bitcoin (BTC) in total losses, according to data from CoinGlass. ETH traders faced $152.78 million in liquidations—the highest for any crypto asset—followed by XRP at $88.58 million. Despite its dominance and deeper liquidity, Bitcoin ranked third with $65.29 million in liquidated positions.
The sharp decline in altcoin positions points to heightened speculative activity among retail traders, many of whom used high leverage. In total, $625.5 million of the wiped-out positions were long bets, indicating that bullish traders were caught off guard by the sudden selloff after weeks of bullish momentum.
Other major casualties included Solana (SOL) with $41 million and Dogecoin (DOGE) with $40 million in long liquidations. Even smaller DeFi tokens like SPK and PUMP saw more than $10 million in leveraged trades wiped out.
The selloff came without a clear fundamental catalyst. However, profit-taking near key resistance levels likely accelerated the drop. ETH had recently approached the $4,000 mark, while BTC traded above $118,000—both seen as potential ceiling levels where large holders tend to take profits.
As of now, Ethereum is down about 3.6% on the day, trading near $3,540. XRP has dropped 6% to around $3.25, extending its weekly losses to over 12%. Bitcoin has fared better, down less than 2% to approximately $116,800.
Crypto liquidations occur when leveraged trades are forcefully closed due to margin calls, often resulting in cascading losses and increased volatility. Analysts monitor liquidation spikes to gauge market sentiment and identify overcrowded trades. Heavy long liquidations can suggest panic selling or local bottoms, while heavy short liquidations may signal upcoming price squeezes.
For savvy traders, combining liquidation data with open interest and funding rate trends can offer strategic entry or exit points—especially in markets prone to overleveraged swings.
