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Crypto Derivatives Market Witnesses Decline in Liquidation Volume Amid Cooling Volatility
Significant Drop in Liquidations as Volatility Eases
The crypto derivatives market experienced a notable decrease in volatility over the last 24 hours, accompanied by a sharp drop in liquidation volumes. While major altcoins saw an outsized liquidation of long (buy) positions, some assets such as Zeroji (0G) and Aster (ASTER) recorded predominantly short (sell) liquidations, signaling token-specific activity driving market trends.
Liquidations Plunge to $261.43 Million, Down 82% in 24 Hours
Data from CoinGlass on October 24 (KST) revealed that a total of $261.43 million in crypto positions were liquidated during the past day, representing a steep 82.42% decline compared to the previous 24-hour period. Long positions bore the brunt of the sell-off, contributing $173.81 million, while short liquidations amounted to $87.63 million. This disparity underscores the concentrated pressure on buyers in the market.
Ethereum (ETH) topped the list with the highest liquidation volume at $52.24 million. Despite a subdued price gain of just 0.28%, long liquidations ($33.60 million) outpaced short liquidations ($18.64 million) significantly. Bitcoin (BTC) followed closely with $42.48 million in total liquidations, predominantly from long positions, which accounted for $35.55 million—or 83.68%—of the total. BTC’s price increase remained marginal at 0.14%.
Long Positions Dominate Liquidations in Ethereum and Bitcoin
Major altcoins demonstrated a similar trend of disproportionate long liquidations. Cardano (ADA), for instance, saw its price drop 7.19% over the past week, leading to $790,000 in long liquidations, compared to just $59,000 in short liquidations—a ratio of 13.16:1. Similarly, Hyperliquid (HYPE), which experienced a sharp weekly decline of 16.21%, had $2.03 million in long liquidations, exceeding short liquidations of $240,000 by a factor of 8.45.
In contrast, certain tokens bucked the broader market trend due to token-specific developments, resulting in higher short liquidations. For example, Zeroji (0G), which witnessed a surge after its listing on the Upbit exchange, recorded $8.93 million in short liquidations—59.29% of its $15.06 million total. Similarly, Aster (ASTER), which saw a boost amid social media mentions by Binance's former CEO Changpeng Zhao (CZ), registered $8.28 million in short liquidations, accounting for 59.91% of its overall $13.82 million total.
Market Trading Volume Slows but Open Interest Remains Steady
The past 24 hours also saw sector-wide trading activity decline. Total trading volume dropped by 25.4% to $280.3 billion. However, open interest (OI) in derivatives contracts held steady at around $206.5 billion, indicating a possible consolidation phase. Across the market, 126,480 traders experienced liquidations, with the largest single liquidation coming from a BitMEX XBT-USDT trading pair valued at $4.22 million.
Market sentiment indicators also showed stabilization amid cooling volatility. The Fear & Greed Index was firmly in the "neutral" zone with a reading of 40, while the Relative Strength Index (RSI) for the broader crypto market stood at 34.07, signifying oversold conditions in some assets.
Diverging Trends Highlight Emphasis on Token-Specific Catalysts
A clear divergence emerged between large-cap cryptos and smaller tokens that benefited from isolated positive catalysts. Long liquidations outweighed short liquidations for major tokens like Ethereum (ETH) and Bitcoin (BTC), while the reverse occurred for smaller tokens such as Zeroji (0G) and Aster (ASTER).
These token-specific movements suggest that liquidation trends are increasingly being shaped by individual developments rather than following broader market sentiment. According to market analysts, this highlights an evolving focus on fundamentals and news-driven activity for specific tokens.
Traders Adjust Strategies Amid Shifting Dynamics
Investors appear to be navigating key shifts in market behavior. Following large liquidations earlier this week, many traders have taken a cautious wait-and-see approach or have pivoted to short positions. Retail investors who hoped for rapid price recoveries, however, faced less favorable outcomes.
Market insiders predict that token-centric decoupling trends will intensify in the coming months. "With the global macro environment remaining uncertain, whale investors are likely to continue employing conservative short strategies," noted one analyst. "Meanwhile, retail traders may drive localized surges in select altcoins based on news-driven catalysts."
Conclusion: A Market in Transition
The easing of volatility in crypto derivatives is providing a mixed picture of market trends. While liquidation activity has slowed overall, long liquidations remain dominant in blue-chip tokens like Ethereum and Bitcoin. At the same time, smaller tokens with unique drivers are bucking broader patterns, with liquidation volumes skewed toward shorts.
As the market continues to grapple with evolving investor sentiment, the growing emphasis on token-specific performance reflects a fundamental shift in trading strategies. This dynamic could ultimately shape the next phase of the derivatives market, as participants look beyond macro trends to capitalize on isolated opportunities within the digital asset ecosystem.
