Crypto markets surged to regain the $1 trillion market capitalization mark over the weekend amid signs of bottoming and a record number of short liquidations contributing to the uptick.
Nearly $500 million in shorts, or bets against higher prices, were liquidated since Friday to mark the highest such levels since October 2022, data from Coinalyze shows.
The liquidation figure mean over 70% of traders booked losses as exchanges closed leveraged positions due to a partial or total evaporation of the trader’s initial margin. Crypto exchange OKX saw $256 million worth of short losses on Friday alone, the most among all crypto exchanges, followed by $125 million on Binance and $42 million on Huobi, Coingass data show.
Aptos’ native APT tokens saw over $10 million in liquidations in an unusual move as prices doubled over the past week.
Major cryptocurrencies are up an average of 20% since last week, CoinGecko data shows. Bitcoin surged 22% to over $21,000 on strong CPI data, ether jumped to as much as nearly $1,600, while solana jumped almost 70%, trading at $24 on Monday from just $9 in the last week of December.
The run wasn’t wholly irrational because the underlying networks of several major tokens saw favorable fundamentals.
Strong transactional activity on Cardano and Solana may have contributed to a surge in their native ADA and SOL tokens, respectively, over the past week. Elsewhere, the upcoming Shanghai upgrade for ether has added to its fundamentals, while Polygon is scheduled for a hard fork – a term for a network upgrade – this week, triggering a 22% rise in MATIC over the past week.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.