$218,000,000 in Liquidations Hits Short Sellers in 24 Hours As Crypto Market Rallies After Favorable XRP Ruling
Short sellers are getting slammed by hundreds of millions of dollars worth of liquidations as the crypto markets rally due to XRP receiving a favorable ruling for crypto traders.
New data from market intelligence firm Coinglass reveals that during the last 24 hours, $218 million worth of digital assets were liquidated from prominent crypto exchange platforms after a judge ruled that Ripple Labs’ automated open-market sales of XRP are not securities.
The highly anticipated ruling sent XRP skyrocketing, as it went from $0.47 to a peak of $0.82, a 74% increase. The digital asset has since retraced and is trading for $0.78 at time of writing.
Coinglass unveils that $77.7 million worth of short contracts were liquidated from Binance, the world’s largest crypto exchange by volume, while other prominent crypto exchange platforms, such as OKX and Bybit, saw $59.8 million and $30.6 million worth of short liquidations respectively.
Many virtual assets saw double-digit price increases during the last day, prompting the liquidations. Smart contract platform Solana (SOL) rallied 18% while layer-2 scaling solutions Arbitrum (ARB) and Optimism (OP) saw increases of 11% and 13%.
Other notable double-digit rises include Ethereum (ETH) rivals Cardano (ADA) and Avalanche (AVAX), which saw respective increases of 16.5% and 15%, payments platform Stellar (XLM), which saw a 31% increase, and ApeCoin (APE), the digital asset associated with the Bored Ape Yacht Club non-fungible token (NFT) collection, rose by 18%.
According to Coinglass, the four crypto assets that saw the most liquidations of short positions during the last day are Bitcoin (BTC), XRP, Solana, and Ethereum.