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Our analysis of the situation
PEPE coin (PEPE) traders found themselves in deep waters on Tuesday as the market took a tumble, resulting in a staggering $3 million in liquidations. The beloved meme coin, which has gained a dedicated following in the cryptocurrency space, was no exception to the sweeping downturn that affected numerous digital assets in the meme genre.
Over the past week, the crypto market has been tumultuous, with major players like Bitcoin (BTC) and Ethereum (ETH) experiencing substantial price fluctuations, testing the nerves of traders. This volatility has led to sharp declines in the value of many coins, including PEPE, which suffered a decrease of nearly 3% in its value on Tuesday.
The turbulent market waves took a toll on leveraged PEPE traders, known for their embrace of risk and the vibrant community surrounding the token. As the coin's value plummeted below critical levels, leveraged positions were forcibly closed, delivering a harsh blow to those who had staked their bets on the whims of the market.
Long traders bore the brunt of this market turbulence, with data from CoinGlass revealing that approximately $2.33 million in long positions were liquidated, while short traders faced a more modest loss of nearly $420,000.
Shockwaves reverberated across the crypto landscape, with a total of 50,877 traders—PEPE enthusiasts among them—suffering a combined loss of $119.83 million in a single day. This hefty sum of losses was attributable to various cryptocurrencies such as BTC, Ether, Solana (SOL), and Ordi (ORDI), a meme coin integrated with the Bitcoin ecosystem.
The data from CoinGlass showed substantial liquidations, including $30 million in losses for Bitcoin traders, with the majority stemming from long positions. Ethereum faced nearly $20 million in liquidations, while SOL and ORDI saw leveraged positions amounting to around $6 million and $2 million closed, respectively.
The brunt of the deluge of losses was borne by centralized exchanges, especially Binance, which accounted for over half of the total liquidations, amounting to a staggering $60.91 million. Notably, Binance was the venue for the largest single liquidation order, involving the ETH/USDC pair and valued at around $1.93 million.
Other exchanges, including OKX, Bybit, and HTX (formerly known as Huobi Global), grappled with substantial losses, facing a combined total of approximately $52 million in liquidations, leaving traders on these platforms reeling from the downturn.
It is crucial to point out that the liquidations were primarily limited to perpetual contracts, with no spillage into the spot market—offering a glimmer of hope for traders in the latter sector.
As the crypto seas continue to roil, PEPE coin traders and crypto enthusiasts at large find themselves navigating uncertain waters, with the recent tumult serving as a stark reminder of the volatility that characterizes the digital asset landscape.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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