Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

15042 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Solana Faces Mild 111.7% Liquidation Imbalance as Price Leads Gainers

Solana Faces Mild 111.7% Liquidation Imbalance as Price Leads Gainers

The post Solana Faces Mild 111.7% Liquidation Imbalance as Price Leads Gainers appeared on BitcoinEthereumNews.com. On Saturday, Solana has not only flipped to the green zone, it has also recorded the highest daily price surge among all 10-largest cryptocurrencies by market capitalization. Amid this positive trend, the leading altcoin has seen the majority of its bearish traders wiped out in its 24-hour liquidation event, according to data from CoinGlass. Solana bounces back in favor of bulls After registering a notable 4% increase in its price over the last day, Solana has experienced a wide gap in its long and short liquidations, setting its derivatives market up due a liquidation imbalance of 111.7% within the past day. In the last 24 hours, over $15 million in SOL was wiped out from its derivatives market due to the high price volatility witnessed during the day. Meanwhile, traders opening short positions accounted for the largest portion of the losses suffered during the period. Notably, the data shows that long traders recorded only a minor loss of $4.95 million during the day, while short traders faced a major loss of $10.48 million. The large gap in the long and short liquidations has seen Solana record a mild liquidation imbalance of 111.7% in favor of traders betting for its potential upsurge. Apparently, bulls were not entirely favored as they were not completely exempted from the liquidation, they only endured a relatively lighter impact compared to the significant losses faced with traders betting against SOL’s upside momentum. This is because Solana was spotted trading deeply in red territory before its sharp reversal to the gainer’s side. As such, the sudden reversal in SOL’s price during the 24-hour period caught both sides off guard. However, short traders bore heavier losses as Solana sharply recovered to lead the day’s top gainers. While this trend suggests that buyers are increasingly taking control of the market despite the volatility,…

Author: BitcoinEthereumNews
Polkadot pUSD: Unlocking a New Era of Decentralized Stability

Polkadot pUSD: Unlocking a New Era of Decentralized Stability

BitcoinWorld Polkadot pUSD: Unlocking a New Era of Decentralized Stability The Polkadot ecosystem is buzzing with a groundbreaking proposal: the introduction of a native stablecoin, Polkadot pUSD. This significant development aims to redefine how stability is maintained within the network, potentially shifting away from its current reliance on external stablecoins like USDT and USDC. For anyone invested in the future of decentralized finance, understanding this strategic move is crucial. Why is Polkadot Proposing a Native Polkadot pUSD Stablecoin? Currently, the Polkadot network largely depends on established stablecoins such as USDT and USDC for its decentralized finance (DeFi) activities. While these have served their purpose, the desire for greater autonomy and control over the ecosystem’s financial infrastructure has grown. The proposed Polkadot pUSD seeks to address this by offering a truly native solution. Previously, an attempt to introduce a stablecoin called aUSD, based on the Honzon protocol, faced challenges and was ultimately unsuccessful. This experience highlighted the need for a robust, well-integrated solution that aligns with Polkadot’s unique architecture. A native stablecoin would mitigate risks associated with relying on centralized issuers and external regulatory pressures, offering more resilience to the ecosystem. How Will Polkadot pUSD Enhance Ecosystem Stability? The architecture behind Polkadot pUSD is designed to foster robust stability. Unlike some algorithmic stablecoins, pUSD is proposed to be over-collateralized by DOT, Polkadot’s native token. This mechanism aims to provide a strong backing, mitigating volatility risks and ensuring a more secure asset for transactions and DeFi protocols within the network. Over-collateralization means that the value of the DOT held as collateral would exceed the value of the pUSD in circulation. This buffer helps absorb price fluctuations in DOT, offering a layer of security for pUSD holders. Furthermore, integrating pUSD directly into Polkadot’s parachain model could unlock seamless interoperability and liquidity across various connected blockchains. What Are the Potential Benefits and Challenges for Polkadot pUSD? Introducing a native stablecoin like Polkadot pUSD brings a host of potential advantages, but it also comes with its own set of challenges that the community must carefully consider. Potential Benefits: Increased Autonomy: Reduces reliance on external, potentially centralized stablecoin issuers. Enhanced Capital Efficiency: Keeps value within the Polkadot ecosystem, fostering internal growth. Seamless Integration: Designed to work natively with Polkadot’s unique parachain architecture. New DeFi Opportunities: Opens doors for innovative lending, borrowing, and trading protocols built around pUSD. Key Challenges: Oracle Reliability: Ensuring accurate and decentralized price feeds for DOT collateral. Liquidation Risks: Managing potential liquidations during extreme market downturns to maintain peg. Adoption and Liquidity: Gaining widespread acceptance and sufficient liquidity to compete with established stablecoins. Governance Hurdles: Securing community consensus through the governance vote process. The success of this proposal hinges on a robust design and strong community support to navigate these complexities. What Does the Future Hold for Polkadot’s DeFi Landscape with Polkadot pUSD? The successful implementation of Polkadot pUSD could profoundly impact the network’s decentralized finance landscape. It represents a strategic step towards greater self-sufficiency and innovation, potentially attracting more developers and users to build on Polkadot. A native stablecoin could act as a foundational block, encouraging the creation of more sophisticated and integrated DeFi applications. Moreover, a native stablecoin would strengthen Polkadot’s position as a leading multi-chain ecosystem, offering a secure and stable asset that can flow freely between its parachains. This would not only enhance user experience but also solidify Polkadot’s vision of an interconnected, decentralized future. The proposal for a native Polkadot pUSD stablecoin marks a pivotal moment for the Polkadot ecosystem. It signifies a bold ambition to strengthen its financial independence and enhance the stability offered to its users and developers. As the community deliberates on this crucial governance vote, the outcome will undoubtedly shape the next chapter of Polkadot’s journey in the competitive blockchain space. Frequently Asked Questions (FAQs) What is Polkadot pUSD? Polkadot pUSD is a proposed native stablecoin for the Polkadot ecosystem, intended to be collateralized by Polkadot’s native token, DOT. Its primary goal is to provide a decentralized, stable asset for transactions and DeFi activities within the network. How is pUSD different from aUSD? While both aim to be stablecoins within Polkadot, pUSD is a new proposal following the challenges faced by the previous aUSD, which was based on the Honzon protocol. The new pUSD proposal aims for a robust design, likely incorporating lessons learned from prior attempts and focusing on strong DOT collateralization. Why is Polkadot proposing a native stablecoin? Polkadot aims to reduce its reliance on external stablecoins like USDT and USDC, which introduce centralization risks and external dependencies. A native stablecoin like pUSD offers greater autonomy, better integration with the ecosystem, and enhanced control over its financial infrastructure. Who decides if pUSD will be issued? The issuance of pUSD is subject to a governance vote by the Polkadot community. DOT holders will participate in this decentralized decision-making process, ensuring that the community has a direct say in the network’s future direction. What are the main risks associated with pUSD? Key risks include ensuring the reliability of price oracles for DOT collateral, managing potential liquidations during extreme market volatility, and achieving sufficient adoption and liquidity to maintain its peg effectively. Robust design and active community oversight are crucial for mitigating these risks. Stay informed about the latest developments in the Polkadot ecosystem! If you found this article insightful, please share it with your network on social media to help spread awareness about Polkadot’s exciting new stablecoin proposal. To learn more about the latest Polkadot trends, explore our article on key developments shaping Polkadot’s future price action. This post Polkadot pUSD: Unlocking a New Era of Decentralized Stability first appeared on BitcoinWorld.

Author: Coinstats
Bitcoin News: Digital Asset Treasury (DAT) Cos House of Cards Falling?

Bitcoin News: Digital Asset Treasury (DAT) Cos House of Cards Falling?

The post Bitcoin News: Digital Asset Treasury (DAT) Cos House of Cards Falling? appeared on BitcoinEthereumNews.com. In recent Bitcoin news, Digital asset treasury (DAT) companies face mounting pressure from two critical fronts. Regulatory scrutiny intensifies, while share prices crater toward their Private Investment in Public Equity (PIPE) funding levels. As The Wall Street Journal reported on Sept. 25, US prosecutors launched investigations into stock movements preceding crypto acquisition announcements, adding regulatory risk to an already fragile business model. Bitcoin News: Regulators Target Crypto Treasury Stock Movements The Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority contacted companies among the more than 200 firms that announced crypto-treasury strategies this year. SEC officials warned firms about potential breaches of rules prohibiting the selective sharing of material nonpublic information before crypto acquisition announcements. The regulatory probe comes as companies attempt to replicate Strategy’s success, which began accumulating Bitcoin in 2020 and popularized the corporate treasury strategy. The timing of the investigation coincides with massive drawdowns across the sector, creating a perfect storm of regulatory and market pressures. PIPE-Funded Companies Suffer Losses A CryptoQuant report on Sept. 25 revealed a devastating performance among Bitcoin treasury companies that raised capital through PIPE programs. The research showed share price drawdowns ranging from 42% to 97%, with stock prices gravitating toward their discounted levels following the PIPE issuance. Kindly MD (NAKA) exemplified the sector’s volatility, surging 18.5 times after its PIPE raise before collapsing 97% back to its $1.12 PIPE price. NAKA shares’ price fluctuation | Source: CryptoQuant The stock crashed more than 50% in a single day when PIPE shares unlocked for trading, demonstrating the destructive power of supply overhangs. Strive (ASST) traded at $3, down 78% from its 2025 high, while facing a potential 55% additional decline to its $1.35 PIPE price. The company’s PIPE shares were scheduled to unlock in October, which could intensify selling pressure. Cantor Equity…

Author: BitcoinEthereumNews
XRP & ADA Fade, Whales Say It’s MUTM’s Time, Price Set to Rise $0.035 to $0.040

XRP & ADA Fade, Whales Say It’s MUTM’s Time, Price Set to Rise $0.035 to $0.040

The post XRP & ADA Fade, Whales Say It’s MUTM’s Time, Price Set to Rise $0.035 to $0.040 appeared on BitcoinEthereumNews.com. As institutional sentiment rotates away from legacy cryptos, retail and whale investors are increasingly turning their attention to under-the-radar DeFi opportunities. While ADA and XRP have historically offered stability and moderate returns, the current market shows clear signs of consolidation in these assets. Mutuum Finance (MUTM), currently in presale at $0.035, is capturing momentum as a high-utility token with structured revenue mechanisms, Layer-2 efficiency, and early-stage pricing poised for rapid growth. Analysts monitoring crypto charts and crypto prices indicate that MUTM’s unique design and presale traction are driving strong accumulation among whales, signaling a potential breakout above $0.040 in the next phase. Cardano (ADA) Cardano (ADA) has long been recognized for its robust proof-of-stake blockchain, staking rewards, and smart contract capabilities. Recent crypto charts reveal a consolidation pattern near historical highs, signaling limited short-term volatility and modest upside. While ADA remains a popular choice for risk-averse investors, its utility is largely confined to network participation and staking rewards. Retail crypto coins focusing on aggressive gains are beginning to redirect attention toward assets offering direct financial incentives, leaving ADA’s potential growth more incremental compared to DeFi projects with layered revenue streams. XRP XRP has maintained relevance through banking partnerships and cross-border payment solutions. Historical highs and crypto price movements indicate a steady trajectory, yet regulatory uncertainties continue to cap its aggressive upside. While XRP serves as a stable option for traditional crypto investing, its utility for early-stage growth investors is restricted. With the institutional rotation away from XRP, whales are prioritizing platforms that offer predictable returns and high adoption potential, putting MUTM in the spotlight as a superior opportunity for capturing early-stage DeFi upside. Mutuum Finance (MUTM): DeFi Utility Driving Rapid Growth Mutuum Finance (MUTM) stands out as a next-generation DeFi platform integrating dual lending models designed to maximize flexibility and…

Author: BitcoinEthereumNews
Ethereum Exchange Supply Drops 52% as $3,700 Liquidation Risk Grows

Ethereum Exchange Supply Drops 52% as $3,700 Liquidation Risk Grows

                         Read the full article at                             coingape.com.                         

Author: Coinstats
Gavin Wood proposed that Polkadot's native stablecoin PUSD has entered the proposal discussion stage

Gavin Wood proposed that Polkadot's native stablecoin PUSD has entered the proposal discussion stage

PANews reported on September 27th that Gavin Wood's proposed Polkadot native stablecoin, PUSD, has entered the proposal discussion phase. His underlying concept is that block producer rewards can be distributed in stablecoins, rather than the highly volatile DOT. Therefore, the Polkadot protocol itself (most likely on the Asset Hub) will issue a new stablecoin, named PUSD, collateralized solely by DOTs. Similar to the HOLLAR stablecoin, users can borrow PUSD by pledging DOTs. However, the community believes that if this stablecoin becomes too large, it will incur correlation risks. For example, a drop in the DOT price could trigger liquidations, which would necessitate the sale of DOTs held in the vault.

Author: PANews
XRP Price Could Crash to $2.08 – Here’s What You Need to Know About the Drop

XRP Price Could Crash to $2.08 – Here’s What You Need to Know About the Drop

XRP could crash to $2.08 – liquidation risks loom large. Expert predicts 24% drop for XRP, prepare for major losses. XRP traders brace for potential plunge to $2.08, experts warn. XRP investors may be facing a turbulent ride ahead, as recent analysis indicates the cryptocurrency could experience a sharp decline. According to EGRAG CRYPTO, XRP might drop by as much as 24%, potentially crashing to as low as $2.08. This predicted fall is stirring concern among traders, particularly those holding leveraged positions, as the market braces for significant volatility. The analysis highlights two major incidents from earlier in the year when XRP experienced considerable drops. In April 2025, XRP saw a 24% dip, followed by another 13% drop in June. These movements have set the stage for a potential 18.5% average decline, which would bring XRP’s price to $2.21. Also Read: Peter Schiff Slams Bitcoin as ‘Stealth Bear Market’-Gold Outperforms Again! Liquidation Fears and Bearish Sentiment The possibility of a 24% drop to $2.08 is causing alarm among traders who entered positions around the $3 mark. A decline to this level could lead to panic selling, especially for those new to the market. The situation becomes even more concerning for leveraged traders, who risk liquidation if prices fall sharply. These traders, unable to cover their positions, could set off a chain reaction of sell-offs, accelerating the price decline. #XRP – Today I Want to Be a #Bear : From my post on September 25, 2025, titled “#XRP – Patterns Repeat, But You Keep Ignoring It!” , let’s take a closer look at how #XRP has reacted on the daily timeframe when interacting with the Bull Market Support (BMSB). Key… https://t.co/hm2HAOIwrJ pic.twitter.com/SZ2F3o6yWh — EGRAG CRYPTO (@egragcrypto) September 27, 2025 A more moderate 13% drop, bringing XRP to $2.37, also raises the possibility of a major liquidation event. However, the most likely scenario according to the expert is the 18.5% average drop, which places XRP at $2.21. This could trigger a series of aggressive liquidations, particularly affecting traders who are still holding long positions. Critical Support Level to Watch EGRAG CRYPTO’s analysis also points to a crucial support level at $1.90. If XRP falls below this threshold on the 3-day timeframe, the market could signal a bearish reversal. Such a move would suggest that the upward trend is over, and the potential top for XRP may have already been reached. While the market has shown some resilience in the past, the expert suggests that if this critical support is breached, it could mean a prolonged downtrend for XRP. The XRP community remains cautious as the market continues to face downward pressure. Investors are advised to keep a close eye on these key price levels and be prepared for potential price movements in the coming days. Also Read: BlackRock Gives New Update on XRP ETF Filing: Details The post XRP Price Could Crash to $2.08 – Here’s What You Need to Know About the Drop appeared first on 36Crypto.

Author: Coinstats
Top Cryptos To Buy As Willy Woo revamps Bitcoin (BTC) price target after 4 years

Top Cryptos To Buy As Willy Woo revamps Bitcoin (BTC) price target after 4 years

The post Top Cryptos To Buy As Willy Woo revamps Bitcoin (BTC) price target after 4 years  appeared on BitcoinEthereumNews.com. As on-chain analyst Willy Woo updates Bitcoin long-term price target for the first time in four years, investor attention is shifting away from the broader altcoin market and to a new coin, Mutuum Finance (MUTM). As Bitcoin’s fresh outlook promises a possible new bull run, intelligent money is also searching for high-upside plays beyond the flagship cryptocurrency.  Mutuum Finance (MUTM), with its revolutionary DeFi model and parabolic growth potential, is quickly emerging as one of the top cryptos to build up before the market’s next leg higher. Mutuum Finance is in phase 6 of its presale which is 50% sold out. The project has already raised more than $16.4 million and attracted more than 16,600 unique holders. Bitcoin’s Long-Term Outlook Grows Stronger as Analysts Set Sights on $160K and More The price action of Bitcoin continues to be a topic of interest in the market as top on-chain analyst Willy Woo gives an update to his long-term forecasts, stating the top crypto can surge to the $140,000–$160,000 range during the next cycle. Woo, who has previously referred to Bitcoin potentially reaching $250,000 to $300,000 on the back of on-chain supply shocks and ongoing long-term investor accumulation, now acknowledges the potential for even higher targets of $300,000–$400,000 if institutional inflows were to gain traction.  Despite recent profit-taking, with whales selling positions close to $120,000 and rotating capital into traditional markets, Bitcoin’s fundamental foundation remains solid, underpinned by sustained inflows and tightening supply dynamics. While the pace of capital entering the market is slower than in previous cycles, analysts believe that these circumstances can still yield a considerable upside run, cementing Bitcoin’s status as a core holding even as investors diversify into riskier, higher-reward Mutuum Finance (MUTM). Mutuum Finance Skyrockets in Presale Mutuum Finance (MUTM) sixth presale round is currently underway at…

Author: BitcoinEthereumNews
Smart Digital Stock Crashes 87% After Controversial Crypto Fund Reveal – What Went Wrong?

Smart Digital Stock Crashes 87% After Controversial Crypto Fund Reveal – What Went Wrong?

The post Smart Digital Stock Crashes 87% After Controversial Crypto Fund Reveal – What Went Wrong? appeared first on Coinpedia Fintech News Smart Digital Group, a digital marketing services provider, recently announced plans to create a diversified cryptocurrency fund focused on established digital assets like Bitcoin and Ethereum.  While the move aimed to strengthen the company’s role in the digital asset space and tap into the growing adoption of cryptocurrencies, the market reaction was far from what …

Author: CoinPedia
Ethereum Treasuries Face Valuation Stress as mNAV Drops

Ethereum Treasuries Face Valuation Stress as mNAV Drops

The post Ethereum Treasuries Face Valuation Stress as mNAV Drops appeared on BitcoinEthereumNews.com. Key Points: Ethereum treasury companies face valuation stress as mNAV drops below 1. Reduced equity issuance capacity hampers ETH accumulation. Might trigger asset sales affecting ETH price negatively. On September 27, 2025, Ethereum treasury firms SharpLink, The Ether Machine, and ETHZilla reported mNAV ratios below 1, amid price weaknesses in ETH, revealing significant valuation stress. This downturn may trigger forced asset sales, affecting governance token values and potentially impacting ETH’s market price. Ethereum Treasuries’ mNAV Decline Sparks Financial Stress The mNAV for major Ethereum treasuries SharpLink, The Ether Machine, and ETHZilla fell below 1, indicating valuation stress. SharpLink holds 838,730 ETH, The Ether Machine holds 495,360 ETH, and ETHZilla holds 102,240 ETH as of September 27. The low mNAV ratio restricts their ability to issue equity at a premium for ETH acquisition, impacting the treasury’s ETH accumulation process. With mNAV below 1, the regular mechanism to bolster ETH holdings through premium equity issuance is halted. This shift can potentially lead to asset liquidation, negatively affecting the ETH value. Market participants express concern over this negative feedback loop, which might further reduce the secondary market for ETH. Ethereum stakeholders and the broader community are closely monitoring these developments. As reported on-chain, there is increased governance activity as treasury managers seek restructuring solutions. Key figures like Joe Lubin, linked with SharpLink, highlight the necessity for innovative capital strategies to navigate this downturn. “Ethereum treasuries must innovate on capital efficiency and staking composition to weather cyclical downturns.” – Joe Lubin, Founder, SharpLink ETH Market Responses to Ongoing Treasury Liquidation Risks Did you know? The fall of mNAV below 1 often indicates emerging market distress reminiscent of the 2022 altcoin cycles when various treasuries faced similar liquidation pressures, affecting liquidity and governance token values. Ethereum (ETH) currently priced at $4,014.97, has a market cap…

Author: BitcoinEthereumNews