According to Coinglass, a cryptocurrency futures trading and information portal, $1.11 billion of trader holdings in crypto assets have been wiped out in the last 24 hours.
The traders speculating that the markets will bounce from the current support level were hit the hardest. They lost nearly $750 million due to the increased liquidy causing their stop loss hits.
As a result of the increased volatility, bearish investors also got their stop loss hit, wiping out about $200 million in short positions over the same period.
With bearish momentum sweeping the crypto markets, Ethereum (ETH) traders saw the largest liquidations on May 9th, totaling 136.31K ETH worth approximately $326 million. This dump plummeted Ether/USDT to as low as $2,200. ETH is trading for $2,387 at writing, down over 5% over the last 24 hours.
The market fall had no mercy on Bitcoin dealers either. They lost 11,310 BTC worth $361.18 million. The most valuable crypto asset has dropped 12.13 percent to $29,730. Bitcoin had hit such low levels previously in July 2021.
Terra (LUNA), a decentralized finance payment network, is the thirds largest liquidated asset. 3.14 million LUNA worth $98.68 million was taken out! LUNA is currently trading at $31.54, down more than 51% in 24 hours.
Which Other Coins Saw Liquidation
Other coins which took the most hit were Solana, APEcoin, STEPN (GMT), and DOGE.
SOL saw the liquidation of 350.68K sols during this period. It amounts to $24.21 million. This liquidation bought Sol down by more than 21%. Currently, it is trading at $69.16 levels.
APEcoin was liquidated by 1.80 million units causing $16.41 million of value lost. As a result, the coin plunged 33% to $7.79. Since then, it has recovered to $9.3 levels.
STEPN (GMT) saw the liquidation of 7.88 million quantities amounting to $15.70 million. This counter fell by more than 41% to levels of $ 1.615. Since then, there has been a recovery of 24% and counter trades at $ 2.008.
121.12 million DOGE were liquidated, valuing $ 13.8 million. DOGE cracked 20% to a low of $0.099. Since then, it too has recovered to $ 0.113, a 15% recovery.
Apart from the above list, NEAR, DOT, LTC, and EOS were also among the other top liquidated coins.
Reasons for the Downfall
Earlier, we reported that all major altcoins were at crucial support levels. These support levels amid this wave of liquidity. The inflow of bitcoin is also at three months high level as the Whales are offloading their holding, causing panic in the market.
The whole crypto market is in a major downtrend. Bitcoin is down by more than 53% from its all-time high of $69,000. Ether is also down by more than 51% from its high levels of $ 4,461—war in Ukraine and curbs by various Federal agencies across the globe.
According to CoinMarketCap data, the crypto market capitalization has decreased to $1.54 trillion, down by 2.28% in the last day.
As per Darshan Bathija, CEO and Co-Founder of Vauld, BTC reached $ 40,000 when Federal Reserve announced an increase in interest rates by 0.5%. However, this didn’t last for long as market participants panicked over inflation and recession fears, resulting in the collapse of equity and crypto markets.