- Altcoin sell-off triggers massive liquidations, with $2.21 billion wiped out.
- XRP’s 25% drop highlights vulnerability amid altcoin market struggles.
- Bitcoin’s 6% decline boosts market dominance, surpassing 60% amid altcoin losses.
The cryptocurrency market has faced a brutal correction recently, with altcoins taking the hardest hit. Analysts Crypto Rover, has pointed to this significant pullback as part of a larger market cycle.
Despite the pain in the altcoin sector, some experts still believe in the potential for an “altcoin season” to emerge in the future. The sell-off, triggered by substantial liquidations, has left many market participants shaken, but this moment may offer a chance for the smart money to make a move.
Massive Liquidations Sweep Through the Market
Crypto analytics platform CoinGlass reported an astounding $2.21 billion worth of liquidations in the last 24 hours alone. A large chunk of this total, around $1.87 billion, came from long positions.
Binance, the global trading platform, led the pack in terms of liquidations, highlighting the intensity of the market’s sell-off. This wave of liquidations mainly affected altcoins, which have experienced drastic declines in the past day.
XRP Faces a Steep Decline, Bitcoin Gains Market Share
Among the worst performers was the Ripple-affiliated XRP token, which plummeted nearly 25%. This marked a stark contrast to its performance in late 2024 when XRP made notable gains and surged to the third position by market cap. XRP’s sharp drop, alongside similar losses from tokens like Dogecoin (DOGE) and Cardano (ADA), has raised questions about the sustainability of the altcoin rally.
Ethereum (ETH) and Binance Coin (BNB) also recorded double-digit losses, further deepening the market’s red sea. However, despite these significant setbacks in the altcoin space, Bitcoin’s decline of only 6% stood out.
This relatively smaller drop allowed Bitcoin to increase its market dominance, surpassing the 60% mark. This shift in market share signifies Bitcoin’s continued strength, particularly when compared to the sharp losses seen in altcoins.
