$13 million was liquidated after the altcoin leverage reached ATH.

The crypto market has just experienced a strong and sudden shake-up, with a wave of large liquidations occurring in the past 24 hours. Ethereum (ETH) led the losses, followed by Bitcoin and a series of other altcoins, as open contracts (OI) surged along with excessive leverage, putting long positions at serious risk.

With the OI of leading altcoins reaching a record high of 45 billion dollars, this sell-off could be a sign of the growing fragility of a market being stretched by speculative bets.

Crypto Liquidation – Which assets are most affected?

As of the time of writing, ETH has suffered the heaviest losses in the latest liquidation wave, with $7.95 million in long positions wiped out. This is also the largest loss across the entire market.

Bitcoin ranks second with a loss of 2.2 million dollars, while DOGE and ENA recorded liquidation amounts of 1.55 million and 1.17 million dollars, respectively. Solana (SOL) also reported significant liquidation, although the amount was below 1 million dollars.

Source: CoinglassMost other assets also recorded slight losses — indicating that this sell-off is concentrated rather than widespread across the entire market.

Overheating leverage sets the stage for a downturn

The latest wave of liquidation seems to be triggered by the excessive leverage accumulating in the altcoin market.

According to data from Glassnode, the OI of top altcoins reached a record high of $45 billion just before the sell-off occurred.

Total OI of leading altcoins | Source: GlassnodeAs seen in the chart, this strong surge began in early July, reflecting a spike in speculative activity.

Typically, such parabolic increases in leverage often precede severe market corrections. When positions are stretched and the funding rate is high, even a small price drop can trigger a chain reaction of widespread liquidation orders.

Upcoming Prospects

The crypto market remains very sensitive to leveraged positions, especially in the altcoin group. Although Bitcoin maintains relative stability, the scale of liquidation in other coins indicates that market sentiment has become overly exuberant.

If OI does not soon adjust to a healthier level, the potential for strong volatility will remain, especially if there is additional downward pressure from macro factors or profit-taking activities. In the near future, the market may enter a "cooling" phase, with a more cautious trading sentiment towards risky long positions.

On the contrary, if the leverage rebounds quickly, a new wave of liquidation may not be far off.

Minh Anh