• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Crypto Liquidation Data May Be Misleading Traders, Warns K33 Research

user avatar

by Giorgi Kostiuk

10 months ago


  1. Altered Liquidation Reports by Exchanges
  2. Importance of Liquidation Data
  3. Reasons and Implications

  4. Recent findings suggest that the volume of crypto market liquidations could be far greater than what major exchanges have been reporting, potentially leaving traders in the dark about the true extent of market risk.

    Altered Liquidation Reports by Exchanges

    Vetle Lunde, a senior analyst at K33 Research, stated that leading cryptocurrency exchanges like Binance have significantly altered their reporting practices since 2021, leading to a dramatic underrepresentation of actual liquidation volumes. According to Lunde, these exchanges now report only one liquidation per second, regardless of the number of liquidations occurring within that time. "Liquidation data from exchanges are bogus and a vast underrepresentation of actual liquidation volumes in the market," Lunde said.

    Importance of Liquidation Data

    This data is critical because it is a tool for assessing market risk and understanding leverage on exchanges. Liquidations occur when traders' positions are forcefully closed due to significant losses, often during periods of high volatility. Accurate reporting of these events is essential for a clear picture of market dynamics, especially for those looking to assess the potential for future volatility.

    Reasons and Implications

    Lunde also noted that open interest—the value of outstanding crypto derivatives—does not always correlate with liquidation data. This discrepancy suggests that the market may not fully understand how leverage is being used and its impact on market movements. According to Lunde, exchanges may limit this data to maintain an informational advantage or for public relations reasons, particularly if they have ties to investment firms that could benefit from more accurate data. The implications of these findings are significant. If traders are operating based on incomplete or inaccurate data, their ability to manage risk and make informed decisions is severely compromised.

    The K33 Research findings raise important questions about the reliability of the data that traders rely on for strategy formulation. Underreporting liquidation volumes can lead to misjudging market risks and erode confidence in decision-making.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Challenges and Prospects for XRP: Analytics and News

chest

XRP maintains a support level at $2.20, but analysts are warning of potential risks and prospects.

user avatarGiorgi Kostiuk

Italy's First Bitcoin ETF-Linked Certificate by UniCredit

chest

UniCredit introduces a Bitcoin ETF-linked certificate for professional clients with capital protection and potential returns.

user avatarGiorgi Kostiuk

Best Blockchain PR Firms – A Key to International Success

chest

An overview of the best PR agencies for blockchain projects helping in global expansion and visibility.

user avatarGiorgi Kostiuk

Strategy Approaches Record of 600,000 BTC: Will Saylor Make the Next Move?

chest

Strategy's holdings rise – currently at 597,325 BTC. Is a new acquisition on the horizon?

user avatarGiorgi Kostiuk

Overview: DOGE Prices Remain Steady, Chainlink Attracts Large Investors

chest

Analyzing the stability of Dogecoin prices and the rapid growth of whale activity in Chainlink.

user avatarGiorgi Kostiuk

June in Cryptocurrency: Funding for AI, DeFi, and RegTech

chest

June brought notable investments in the cryptocurrency industry, covering AI, DeFi, and regulatory technologies.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.