XPL Liquidations Surge to 39% of Market as Bitcoin and Ethereum Rise

A sharp wave of forced deleveraging in the XPL token dominated crypto market mechanics on Monday, even as Bitcoin (BTC) and Ethereum (ETH) pushed higher—an unusual combination that pointed to resilient risk appetite alongside rising volatility risks.

Liquidations concentrated in XPL as BTC and ETH rose

Over the past 24 hours, crypto derivatives liquidations totaled roughly $71.2 million. XPL accounted for $27.81 million, or about 39% of the total. Bitcoin recorded $17.28 million in liquidations and Ethereum $16.35 million.

The concentration of liquidations in a single high-volatility asset suggested the move was more “idiosyncratic” than systemic, resembling the unwinding of overheated altcoin leverage rather than a broad market break.

Despite the liquidation pressure, prices held firm. Bitcoin rose 3.54% to $69,681, while Ethereum gained 3.98% to $2,142. Liquidations occurring alongside rising benchmark prices indicated a “mixed tape,” with both long and short positioning being shaken out while upside pressure remained intact.

Altcoins follow higher; XRP shows signs of short-covering

Major altcoins broadly tracked the move higher. XRP rose 3.02%, BNB advanced 2.47%, and Solana (SOL) gained 2.49%.

In XRP’s case, short liquidations reportedly outweighed long liquidations by more than two-to-one, suggesting part of the rally may have been driven by “short-covering” rather than purely fresh directional buying.

Market structure: capital clustering around BTC and ETH

Market structure data reinforced the idea that capital continued to concentrate in the largest assets. Bitcoin dominance increased to 58.56%, up 0.34 percentage points on the day. Ethereum’s share edged up to 10.86%, a gain of 0.11 points.

Together, the tandem rise suggested that even as altcoin-specific volatility flared, core liquidity remained anchored in BTC and ETH.

Derivatives turnover jumps as leverage activity intensifies

Trading activity accelerated. Total 24-hour spot volume was about $93.79 billion, indicating the move was supported by participation rather than a thin-liquidity bounce.

Derivatives activity was more pronounced: 24-hour derivatives volume surged to roughly $850.94 billion, up 78.21% from the prior day. While aggregate liquidations remained below $100 million, the spike in derivatives turnover signaled persistent “leverage demand” and intensifying short-term positioning battles.

DeFi and stablecoin flows show mild divergence

On the margins, decentralized finance showed mild improvement. DeFi market capitalization reached approximately $58.56 billion, with volume around $10.00 billion, up 0.50%.

Stablecoin trading volume, however, slipped 0.98% to about $92.46 billion. The divergence suggested liquidity was being rotated within spot and derivatives markets rather than building on the sidelines as idle cash.

Geopolitical risk returns to the macro picture

Macro risk resurfaced as Middle East geopolitical tensions returned to focus. President Trump warned that if an agreement with Iran is not reached, the U.S. could pursue actions including dismantling power facilities and destroying bridges, and also raised the possibility of disruption tied to passage through the Strait of Hormuz.

Separately, reports said two Qatar-linked LNG carriers attempted to transit the strait but turned back, an anecdote markets can read as a reminder of fragile energy supply routes.

Impact and outlook: higher volatility risk without a broad price break

For crypto, intensifying energy and geopolitical uncertainty can cut both ways: it may support “safe-haven” positioning for some investors while dampening speculative appetite, particularly in highly levered segments. With derivatives activity already surging, macro headline risk can translate quickly into sharper intraday swings.

Institutional narratives and DeFi governance concerns

Institutional and industry narratives offered a mixed backdrop. JPMorgan projected that real-world asset tokenization could expand to $13 trillion by 2030, while cautioning incumbents about rising blockchain-native competition.

Coinbase CEO Brian Armstrong outlined priorities including expanding the exchange platform, building stablecoin-based payments, and accelerating onchain finance—positioning the sector beyond a fee-driven trading model toward broader financial infrastructure.

At the same time, governance and execution risks remained visible in DeFi. Continued departures among core contributors tied to the Aave DAO highlighted that protocol-level governance stability can remain a meaningful, hard-to-price risk.

Overall, Monday’s session showed the market absorbing a large, localized XPL liquidation event while maintaining strength in Bitcoin and Ethereum. Yet with derivatives volumes exploding and Middle East risks re-emerging, the rally’s backdrop appeared prone to higher volatility even without a broad-based break in prices.