After rising prices across the board during the day, the cryptocurrency market has now seen a sharp increase in liquidations.
The correction affected almost all cryptocurrencies
The sudden drop in prices seems to have caught crypto derivatives traders off guard, as a sharp increase in liquidations of “long” positions of all crypto assets was observed on all exchanges. Currently, $2.2 billion worth of long positions have been liquidated, and $6 billion has already been removed from open interest. Most liquidations occurred on the Bybit futures exchange, followed by Binance.
Bitcoin is down 10% at the time of writing and is back below $50,000. Ethereum has also failed to reach a new all-time high and suffered a 15% correction to $3400. Other coins in the top 5 that lost ground were Cardano and XRP, both of which saw a correction of nearly 20%. Many other DeFi tokens such as Uniswap, Aave, and Chainlink also suffered a significant hit.
Even promising layer-one tokens were unable to escape the correction, but Solana managed to surprise most of the investors the coin which performed very well recently had hit an all-time high of $193 and dropped to $138, but found support there and saw a climb back and is currently sitting at around $150. Avalanche on the other hand had taken a big run-up and received a lot of attention on Twitter, but is currently down 25% on a daily time frame.
The data used in this article may not be accurate anymore at the time of reading and was taken from Coinmarketcap.
What happened to NFTs?
It looks like the NFT market has not been hit very hard by the current correction. One reason for this may be that many projects already experienced a slight correction last week. Projects have lost some volume today, with Bored Ape Yacht Club seeing a 36% drop in volume, and Loot also seeing a 37% drop in trading volume.
The only project that has suffered significant losses recently was Art Blocks, which saw a drop in trading volume of almost 70% today. However, it seems that this is not related to the current correction, but is just a pullback in the NFT space itself. Many Art Blocks Curated, and Factory projects have seen rapid and significant appreciation in value and are now seeing a correction.
It’s still unclear if the correction in Ethereum will have much of an impact on the NFT market, but for now, it looks like most collectors are not bothered by the price fluctuations in the market.