On August 1, 2025, a sharp market correction resulted in total liquidations reaching $351.86 million, with Ethereum and Bitcoin suffering significant losses.
Overview of Liquidations
The sharp market correction on August 1, 2025, led to liquidations totaling $351.86 million. Ethereum (ETH) experienced the most significant loss, amounting to $108.88 million. This sudden change highlights the risks involved in leveraged trading.
Major Losses on Binance and Bybit
Binance and Bybit recorded the highest liquidation volumes at $138.18 million and $102.87 million, respectively. Despite the magnitude of the event, no official responses or statements emerged from key industry figures like Binance CEO Richard Teng or Ethereum co-founder Vitalik Buterin.
Impact on the Market and DeFi Protocols
The liquidations significantly impacted the financial markets, with ETH and BTC experiencing notable asset losses. In total, ETH short positions lost $43.08 million, far overshadowing BTC's losses. Such events typically lead to a temporary decrease in liquidity within DeFi protocols, although current on-chain data does not provide direct references to liquidity impacts.
These liquidations highlight the importance of resilience in the crypto ecosystem and the need for robust risk management strategies.
