Crypto traders saw their leveraged positions forcibly closed as the coin’s value dropped below critical levels.
PEPE coin (PEPE) traders faced a harsh reality on Tuesday as the market downturn led to liquidations totaling $3 million. The popular meme coin, which has garnered significant interest from the crypto community, was not spared from the broader market slump affecting many digital assets in the meme category.
The crypto market has been experiencing increased price fluctuations over the past week, with leading digital assets like Bitcoin (BTC) and Ethereum (ETH) trading within the range of $66,000 and $3,400. This unsteady market has led to sharp declines in the value of many coins, including PEPE, with the token shedding nearly 3% of its value on Tuesday.
Market Turbulence Strikes PEPE Traders
As a result of this decline, crypto traders who bet on the price of the meme coin, known for its vibrant community and high-risk, high-reward nature, saw their leveraged positions forcibly closed as the coin’s value dropped below critical levels.
Long traders suffered the brunt of the market volatility. Data from CoinGlass shows that approximately $2.33 million in long positions were liquidated, while short traders experienced a more modest loss of nearly $420,000.
During this period, a total of 50,877 traders, including those trading PEPE, suffered a combined loss of $119.83 million in a single day. This loss stemmed from BTC, Ether, and other cryptocurrencies such as Solana (SOL) and Ordi (ORDI), a meme coin built on the Bitcoin ecosystem.
CoinGlass data indicates that Bitcoin traders lost a total of $30 million, with most of the losses coming from long positions. Ethereum, on the other hand, suffered nearly $20 million in liquidations, while SOL and ORDI saw around $6 million and $2 million in leveraged positions closed, respectively.
Centralized Exchanges Bear the Brunt
All the leveraged positions closed in the last 24 hours occurred primarily on centralized exchanges. Crypto exchange Binance took the lead, contributing over half of the total liquidations.
According to CoinGlass data, Binance saw $60.91 million of opened leverage positions closed. Additionally, the largest single liquidation order happened on Binance on the ETH/USDC pair, worth around $1.93 million.
Other crypto exchanges like OKX, Bybit, and HTX, formerly known as Huobi Global, also faced significant losses. These exchanges experienced a combined total of approximately $52 million in liquidations.
Crypto traders on OKX saw about $33.58 million vanish as the market tumbled on Tuesday.
However, it is important to note that only perpetual contracts were liquidated in the last 24 hours, with no spillover to the spot market, as traders in the latter sector can only experience permeant losses when they exit their trades.
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