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Dogecoin, Solana Traders Nurse Big Losses as Cryptos See $400M in Liquidations

Wednesday's figures were the third-highest liquidation losses of this year.

Updated May 11, 2023, 4:41 p.m. Published Apr 7, 2022, 7:53 a.m.
(Getty Images)
(Getty Images)

Traders of crypto futures lost over $400 million on Wednesday as most cryptocurrencies dropped below support levels following hawkish comments from the U.S. Federal Reserve.

Wednesday’s figures were the third-highest of 2022 following nearly a billion dollars worth of losses stemming from liquidations on Jan. 21 and $470 million on Jan. 22. fell to $42,500 from $47,000 at the time.

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Wednesday saw over $400 million in liquidation losses. (Coinglass)
Wednesday saw over $400 million in liquidation losses. (Coinglass)

Liquidations occur when an exchange forcefully closes a trader’s leveraged position as a safety mechanism due to a partial or total loss of the trader’s initial margin. This happens primarily in futures trading, which only tracks asset prices, as opposed to spot trading, where traders own the actual assets.

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Futures tracking Solana’s SOL and Dogecoin’s DOGE saw a combined $40 million in liquidation losses, the most among major cryptocurrencies outside of bitcoin and ether . Meanwhile, GMT tokens of the month-old crypto project StepN were an unusual entrant on the list with $9 million in recorded losses.

Both DOGE and GMT were among the top gainers in the past week. DOGE prices were buoyed amid speculation that Tesla CEO Elon Musk’s appointment to the Twitter board would be a positive catalyst for dogecoin’s growth, while Stepn gained popularity among traders for its unique step-to-earn approach.

DOGE dropped steeply after a rise earlier this week. (TradingView)
DOGE dropped steeply after a rise earlier this week. (TradingView)

Bitcoin futures racked up $92 million in losses, the most among all cryptocurrencies, followed by ether futures at $64 million. The losses continued in Asian hours on Thursday, with over $40 million in liquidations already recorded at writing time.

Data from tracking tool Coinglass show most liquidations took place on crypto exchange Binance, with over $133 million in losses. Traders on OKX and FTX saw the next highest losses with $100 million and $68 million respectively.

Some 83% of all traders were long, or betting on higher crypto prices, following a bitcoin drop to support at $45,000 on Wednesday. However, the asset has lost a further 5% since then and trades at $43,500 at writing time.

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Exchange Review - March 2025

Exchange Review March 2025

CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.

What to know:

Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.

  • Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
  • Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions. 
  • Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.

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