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.

15170 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
What Smart Investors Know That Most Crypto Newbies Don’t

What Smart Investors Know That Most Crypto Newbies Don’t

The crypto market in 2025 continues to offer incredible potential, attracting millions of new investors eager to join the next big wave of digital wealth creation. Bitcoin and Ethereum remain the two dominant names, but emerging projects like MAGACOIN FINANCE are capturing massive attention thanks to their strong community support and growth potential. As excitement […]

Author: Cryptopolitan
The Cryptocurrencies to Add to Your Portfolio Now as Ripple (XRP) Sees Major $55.8M Whale Transfer

The Cryptocurrencies to Add to Your Portfolio Now as Ripple (XRP) Sees Major $55.8M Whale Transfer

When whales move millions in Ripple (XRP), the crypto market is all aflutter with speculation, but the wisest opportunities usually hide off the radar of hype-driven trades. Mutuum Finance (MUTM) is turning out to be one such high-potential gem, currently in the middle of Phase 6 of its presale, at a mere $0.035, and already […]

Author: Cryptopolitan
Crypto News: Market Faces $5.6B Options Expiry Post Hawkish Jerome Powell Jitters

Crypto News: Market Faces $5.6B Options Expiry Post Hawkish Jerome Powell Jitters

The post Crypto News: Market Faces $5.6B Options Expiry Post Hawkish Jerome Powell Jitters appeared on BitcoinEthereumNews.com. Bitcoin, Ethereum, and XRP traders brace for $5.6 billion in crypto options expiry. The expiry follows the Federal Reserve Chair Jerome Powell speech that gave no guidance for investors, keeping the crypto market volatile and uncertain. Crypto prices dipped as the US dollar and the 10-year Treasury yield rose amid economic growth concerns due to the prolonged U.S. government shutdown. Will the market cap slip under $4 trillion again amid massive crypto liquidations? Crypto News: $4.6 Billion Bitcoin Options Expiry More than 38K BTC options with a notional value of $4.6 billion to expire on the largest derivatives crypto exchange Deribit on October 10. The put-call ratio was 1.1. This indicated that traders were leaning bearish, placing more put options bets as compared to calls after the latest crypto market crash. Moreover, the max pain price was at $118,000, significantly lower than the current market price. This implied only a slight chance of a pullback in BTC price towards the max pain, with high calls at $120,000 and $121,000 strike prices. In addition, the 24-hour call volume was higher than the 24-hour put volume. Also, the put-call ratio of 0.87 indicated that traders were cautiously buying calls options amid neutral sentiment. Bitcoin Options Open Interest | Source: Deribit As per Greekslive, major participants were focusing on out-of-the-money call options and strike prices close to their recent historical highs. Options open interest below $120,000 are relatively scarce, and the overall market maker gamma level is still low, signaling limited impact from minor price fluctuations. Bitcoin price was trading 2% lower at around $120,800 at the time of writing. The 24-hour low and high were $120,798 and $124,167, respectively. Ethereum Options with $0.93 Billion in Notional Value to Expire In Ethereum crypto news, 215K ETH options with a notional value of almost…

Author: BitcoinEthereumNews
Flare Network Hits $43M in Bridged XRP as FXRP Demand Accelerates

Flare Network Hits $43M in Bridged XRP as FXRP Demand Accelerates

TLDR Flare Network confirmed that $43 million worth of XRP has been bridged to its blockchain. The bridged XRP was used to mint FXRP which allows users to access decentralized finance without selling their tokens. Each FXRP minting round has reached its five million token limit within just a few hours. The first allocation was [...] The post Flare Network Hits $43M in Bridged XRP as FXRP Demand Accelerates appeared first on CoinCentral.

Author: Coincentral
Bitcoin pulls back to $120K, sparking $120M in liquidations

Bitcoin pulls back to $120K, sparking $120M in liquidations

The post Bitcoin pulls back to $120K, sparking $120M in liquidations appeared on BitcoinEthereumNews.com. Key Takeaways Bitcoin’s brief dip to $120K triggered over $120 million in liquidations, led by Bitcoin, Ethereum, and Solana positions. Analysts describe the pullback as a healthy correction before potential continuation of the uptrend. Bitcoin pulled back to the $120,000 level today, triggering over $120 million in liquidations across major crypto assets within the past hour. Roughly $100 million came from long positions and $20 million from shorts, with Bitcoin leading the liquidations at $67 million. Ethereum and Solana followed with $19 million and $14 million respectively. Analysts view the recent declines as a necessary correction to cool off speculative excess and reset leverage conditions after Bitcoin’s rapid run-up. Source: https://cryptobriefing.com/bitcoin-falls-below-120000-volatility-correction/

Author: BitcoinEthereumNews
Ethereum Exit Queue Swells to $10.5B: DeFi Faces Pressure From Record Staking Delays

Ethereum Exit Queue Swells to $10.5B: DeFi Faces Pressure From Record Staking Delays

Ethereum’s staking mechanism is under the microscope as the withdrawal queue hits record levels. Reports claim that 2.4 million ETH worth almost $11 billion are waiting to exit the consensus layer. The average delay is now about 42 days. While Ethereum co-founder Vitalik Buterin calls the Ethereum Staking Withdrawal Delay mechanism a security tool, the ecosystem is warning of cascading pressures on DeFi, liquid staking derivatives and lending collateral systems. Size of the Exit Queue and Delay Metrics The exit queue has ballooned to 2.44 million ETH (over $10.5 billion) in withdrawal limbo. Reports show 2,407,789 ETH are queued for exit with an estimated wait time of almost 42 days. The entry queue (ETH waiting to be staked) is 1,365,205 ETH with a delay of about 24 days. Ethereum Staking Withdrawal Delay The exit queue is much larger and slower than the entry queue, showing pressure on liquidity flows from staking to onchain applications. Also read: Ethereum Liquidity in Q4: Risk-Off Flows vs Long-Term Staking  Drivers and Stake Concentration Liquid staking providers like Lido, EtherFi, Coinbase and Kiln are a big chunk of the exiting $ETH. Many stakers use derivatives like stETH to keep liquidity even as validator withdrawals accumulate. Sources note this is not an anomaly: the current queue is only slightly behind the 2.6 million ETH peak on Sept 11 and the 2.48 million ETH on Oct 5. The Ethereum protocol restricts the number of validators that can exit per epoch. This throttling ensures network stability but leads to growing queues when exit demand spikes. Reports claim at current rates; users could face nearly six weeks of delay. Community Voice: “Time Bomb,” Collateral Risk and Distorted Pricing Pseudonymous analyst Robdog warned that prolonged Ethereum Staking Withdrawal Delays could trigger a “vicious unwinding loop” for DeFi and liquid staking derivatives. He said tokens like stETH, which are used as collateral, may lose parity or trade at deeper discounts if exit duration increases. Robdog said: “This will trigger a vicious unwinding loop which has massive systemic impacts on DeFi, lending markets and the use of LSTs as collateral.” He explained if the exit delay doubles the incentive to hold or trade derivatives falls, yield compresses and pegs weaken. Buterin defended the design saying the delay is a form of discipline: delayed exits discourage speculation and validator continuity. Other voices add nuance. Nicolai Sondergaard  of Nansen says; “Large withdrawals always means there is a chance to sell, but it doesn’t mean tokens are being sold.” RedStone’s Marcin Kazmierczak said some withdrawals are consolidation (e.g. merging smaller validator stakes into larger ones) rather than panic exits. DeFi, LSTs and Collateral Chains Under Strain stETH and other liquid staking tokens anchor $13 billion in total value locked across DeFi, most in leveraged positions. Delays push stETH discounts deeper. If exit timing shifts from 45 to 90 days, the yield arbitrage shrinks and holders may exit or reduce collateral usage. This puts pressure on platforms like Aave, Maker, or lending vaults using stETH as collateral; hence liquidation thresholds may tighten. A recent study  finds that stETH and wstETH show high velocity as most transfers are by large addresses, likely institutional players; while smaller users remain passive. This concentration intensifies systemic sensitivity. If a few large holders move, ecosystems feel the blow. As a result, the Ethereum staking withdrawal delays not only affect exits but echo through collateral velocity and DeFi health. Also read: Analysts See Ethereum Reaching $5K in 2025 Backed by Staking Demand and Layer-2 Innovation Institutional Offset, Market Sentiment and Liquidity Buffer Despite the exit pressure, institutional stakeholders are stepping in. Sources note Grayscale staked $150 million in ETH, and added 272,000 ETH ($1.21B) to the entry queue. Analyst Iliya Kalchev estimates that ETFs and corporate treasuries now hold over 10 % of ETH’s total supply, and October ETH ETF inflows have exceeded $620 million; a buffer absorbing some selling pressure. Ethereum Staking Withdrawal Delay Nansen’s Sondergaard also says high exit levels don’t equal forced selling as many validators may redeploy or restake internally. Conclusion Based on the latest research; the Ethereum validator exit queue has grown to 2.44 million ETH, or over $10 billion, and Ethereum Staking Withdrawal Delays are now at 42 days. While this is causing concern about liquidity stress and stETH peg risk, there’s more to the story;  consolidation, institutional staking inflows are also at play. For in-depth analysis and the latest trends in the crypto space, our platform offers expert content regularly. Summary Validators are stuck in the exit queue. 2.44M ETH ($10.5B) is waiting to be withdrawn with delays of 42 days. Some say DeFi and LSTs are at risk. Institutional staking is absorbing short-term pressure. Glossary Validator exit queue – ETH to be withdrawn but awaiting processing due to throughput limits. Liquid Staking Tokens (LSTs) – Tokens like stETH that represent staked ETH and provide liquidity. stETH discount/peg gap – The divergence between stETH and ETH value due to withdrawal delays. Epoch/Churn – The periodic unit (6.4 minutes) determining how many validators can exit per cycle. Liquidity shock – Sudden rush of withdrawals or liquidations that stresses available liquidity. Frequently Asked Questions About Ethereum Staking Withdrawal Delays Why is the Ethereum staking withdrawals delay taking 42 days? Because the protocol limits the number of validators that can exit per epoch, so when exit requests exceed throughput, there’s a queue. Does queuing mean $ETH is being sold? Not necessarily. Nicolai Sondergaard notes that large withdrawals don’t always translate to sales; many are redeployed or restaked. What’s at stake for stETH and other LSTs? Long delays weaken the peg, increase discounts, reduce yield incentives and stress collateral usage in DeFi protocols. Can institutional activity offset exit pressure? Grayscale and corporate treasuries are staking large ETH amounts, which offsets exit flows. How might Ethereum fix this? Potential protocol upgrades could increase exit throughput, optimize queue handling or adjust churn parameters. Read More: Ethereum Exit Queue Swells to $10.5B: DeFi Faces Pressure From Record Staking Delays">Ethereum Exit Queue Swells to $10.5B: DeFi Faces Pressure From Record Staking Delays

Author: Coinstats
Ethereum May Be Recalibrating After On-Chain Spike as Transactions, Network Growth and Sentiment Ease

Ethereum May Be Recalibrating After On-Chain Spike as Transactions, Network Growth and Sentiment Ease

The post Ethereum May Be Recalibrating After On-Chain Spike as Transactions, Network Growth and Sentiment Ease appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Ethereum’s activity slowdown is a temporary pullback in on-chain metrics rather than structural weakness: Internal Contract Calls, Transaction Count and Network Growth have contracted recently, but sustained daily transactions above 1 million and continued ETF inflows and institutional usage support a potential stabilization and eventual recovery. Internal Contract Calls fell from a ~9.5M daily average, signaling reduced DeFi and RWA activity. Transaction Count dropped from ~1.6M to ~412K and Network Growth fell from ~150K to ~37K, showing lighter onboarding. Weighted Sentiment turned negative (–0.35) while liquidation heatmaps show dense bands at $4,400–$4,600 on ETH/USDT. Ethereum slowdown: on-chain metrics show a temporary cooldown; watch transactions and network growth for signs of stabilization. Read the latest data-driven analysis and next steps. What is causing Ethereum’s recent activity slowdown? Ethereum slowdown reflects lower user engagement on the chain driven by a drop in Internal Contract Calls, fewer daily transactions and reduced new-address growth. Market participants appear to be consolidating positions after a period of elevated DeFi and RWA interactions, producing muted sentiment and lighter network onboarding. How significant is the decline in…

Author: BitcoinEthereumNews
Illicit Crypto Holdings Top $75B as Bitcoin Dominates: Chainalysis

Illicit Crypto Holdings Top $75B as Bitcoin Dominates: Chainalysis

A new Chainalysis study estimates that more than $75 billion in cryptocurrency linked to criminal activity is currently identifiable on public blockchains, presenting what the firm calls an unprecedented opportunity for coordinated asset seizures. The analysis focuses on static balances rather than transaction flows, arguing that the stock of assets sitting in wallets tied to illicit activity is the clearest indicator of what can be recovered today. Illicit Balances Swell to $15B, Led by Stolen Funds As of July 2025, wallets directly attributed to illicit entities hold nearly $15 billion across Bitcoin, ether, and stablecoins—up roughly 359% since 2020. Stolen funds are the single largest category by balance, reflecting the tendency of hackers to park assets while testing laundering routes or awaiting cash-out opportunities. While the share of Bitcoin held by illegal actors has fallen in coin terms since 2020, BTC still represents about 75% of illicit entity balances by value, thanks to long-run price appreciation. Ether and stablecoins have grown as a share of holdings, with stablecoins often used tactically as short-term liquidity during laundering. The $60B Downstream Shadow Economy Beyond the first hop, Chainalysis identifies over $60 billion sitting in “downstream” wallets—addresses that received more than 10% of their inflows from illicit sources—roughly four times the balances held by the illicit entities themselves. Darknet market administrators and vendors account for over $40 billion of this total, showing how marketplace structures distribute wealth across operators and sellers and have benefited from a decade of crypto price gains. Chainalysis cautions that some laundering hubs and cross-chain bridges act primarily as transit points, so their standing balances may understate their centrality to criminal value chains. Cash-Out Routes Fragment as Seizure Windows Shrink Centralized exchanges remain the preferred off-ramp, with illicit inflows averaging more than $14 billion per year since 2020 and nearing $7 billion in the first half of 2025. But criminals are adding layers to evade compliance: direct transfers from illicit wallets to exchanges have plunged from roughly 40% of quarterly flows in 2021–2022 to around 15% in Q2 2025. Deposit address reuse is also collapsing, indicating faster turnover of exchange accounts. After operations cease, liquidation speeds diverge by asset: nearly 95% of stablecoin balances drain within 90 days, about 87% for ether, and only ~52% for Bitcoin—leaving a longer runway to interdict BTC holdings. Policy Playbook: Converting Insight into Recoveries With Washington’s Strategic Bitcoin Reserve and Digital Assets Stockpile indicating a more aggressive seizure policy, Chainalysis argues that speed and coordination are now decisive. Effective recovery requires expedited seizure powers, cross-border information sharing, and technical capacity to trace funds across chains. The company says its KYT and Reactor tools, along with its services arm, have already helped authorities seize more than $12.6 billion. The headline figure—$15 billion in illicit-entity balances and over $60 billion downstream—suggests that with modernized workflows and clearer legal pathways, law enforcement can translate blockchain transparency into record-level recoveries

Author: CryptoNews
Best Altcoin to Buy as Bitcoin, Ethereum, and Solana Crypto Funds Pull In Record $5.95 Billion

Best Altcoin to Buy as Bitcoin, Ethereum, and Solana Crypto Funds Pull In Record $5.95 Billion

While Bitcoin, Ethereum, and Solana crypto funds attract a record $5.95 billion as investments, market attention is once again on the crypto market giants. While these blue-chips dominate headlines and institutional capital, the most lucrative opportunities for early investors typically look like they do in Mutuum Finance (MUTM), a utility-centered altcoins in its early phase. […]

Author: Cryptopolitan
Ethereum-Based Mutuum Finance (MUTM) Records 60% Phase 6 Completion as Funding Surpasses $17M

Ethereum-Based Mutuum Finance (MUTM) Records 60% Phase 6 Completion as Funding Surpasses $17M

Mutuum Finance (MUTM) is increasingly emerging as one of the standout decentralized finance (DeFi) projects of 2025, not through hype alone but through steady execution and data-backed progress. As the presale advances toward its later stages, the Ethereum-based protocol has crossed another major milestone, with funding surpassing $17 million and Phase 6 now 60% complete. This marks a significant step in the project’s structured journey toward launch. Clear Price Progression and Strong Participation The presale began in early 2025 at $0.01 during Phase 1 and was structured with approximately 20% price increases at each stage. This clear, stepwise model is designed to reward early entrants while giving later participants a transparent view of upcoming price levels, a level of clarity rarely seen in early-stage crypto sales. It also introduces a natural sense of urgency, as each stage’s completion pushes the price closer to the final listing target. Currently, the token is priced at $0.035 in Phase 6, marking a 250% appreciation for those who participated in the earliest round. Phase 7 is set at $0.04, and the official listing price is fixed at $0.06. Once these targets are reached, Phase 1 investors stand to see up to 500% appreciation by launch, while those joining during the current phase could still nearly double their MUTM value upon listing. This structured trajectory has played a major role in sustaining momentum, as each stage offers clearly defined upside potential without relying on vague or speculative promises. Participation metrics further emphasize the scale of engagement. More than 750 million tokens have already been distributed, and the presale has attracted over 16,800 holders to date. This level of broad distribution is critical: instead of a few whales dominating supply, ownership is spread across a wide community base. Such dispersion reduces post-launch volatility and lays the groundwork for more stable and liquid trading once the token hits the market. Combined with the steadily rising price structure, this approach has turned the presale into one of the most closely watched funding events of 2025. Aligning Fundraising With Development Mutuum Finance is pairing capital raising with tangible product milestones. According to a recent statement from the team on X (formerly Twitter), development of the lending and borrowing protocol is already underway, with V1 scheduled for Sepolia Testnet deployment in Q4 2025. The first version will include a liquidity pool, mtToken (interest-bearing receipts), debt token, liquidator bot, and other core modules required for functional credit markets. Initial supported assets will be ETH and USDT for lending, borrowing, and collateral. This roadmap signals that fundraising is matched by execution, building confidence in the project’s long-term vision. Utility-Driven Tokenomics At the core of Mutuum Finance’s appeal is its utility-centric token model. Rather than relying on speculative hype, the protocol embeds demand into every interaction. Its dual lending architecture combines Peer-to-Contract (P2C) pooled markets for mainstream assets like ETH and stablecoins with Peer-to-Peer (P2P) isolated agreements for riskier or less liquid tokens. This allows the platform to scale efficiently while isolating risk pockets, preventing volatility in niche markets from destabilizing the entire protocol. Loans are overcollateralized, governed by strict Loan-to-Value (LTV) ratios, and offer both variable and stable borrowing rates. For example, at a 75% LTV, a user depositing $1,000 of ETH could borrow up to $750 in stablecoins, with liquidation triggers protecting the system from undercollateralization. On the supply side, liquidity providers earn APY from interest payments, creating a clear incentive structure. Analysts Draw Parallels Between MUTM and Early Aave A growing number of analysts have begun drawing comparisons between Mutuum Finance (MUTM) and Aave during its formative years. Before becoming one of DeFi’s cornerstone protocols, Aave started as a focused lending platform with clear mechanics, strong incentives, and a well-defined roadmap. Early adopters who recognized the value of Aave’s lending model benefited tremendously as it grew from a niche protocol into a dominant liquidity layer for DeFi. Many experts now believe MUTM may be positioned in a similar way, at the intersection of early-stage accessibility and structural utility. What fuels this comparison is MUTM’s emphasis on embedding token demand directly into protocol activity. Much like Aave in its early growth phase, MUTM is not relying on hype cycles alone; it’s building mechanisms such as dual lending markets, overcollateralized loans, mtTokens, and a buy-and-redistribute fee model to create sustainable value loops. Analysts note that these elements mirror the foundational strategies that allowed Aave to compound liquidity, retain users, and scale rapidly across cycles. The difference is timing. Whereas Aave entered the market during DeFi’s early boom, MUTM is launching in a more mature environment, but one where investors actively look for projects with real utility and proven mechanics. This gives MUTM the potential to capture both hype-driven momentum and long-term user adoption. Security, Bug Bounty & Transparency Investor trust has been bolstered through deliberate security and transparency measures. Mutuum Finance successfully passed a CertiK audit with a 90/100 Token Scan score, placing it among the stronger DeFi projects undergoing independent review. The team has also introduced a $50,000 bug bounty across multiple tiers to encourage white-hat testing before mainnet launch. On the community side, a $100,000 giveaway is underway, set to reward 10 winners with $10,000 in MUTM tokens each, strengthening early engagement. Real-time dashboards and a Top 50 contributor leaderboard make presale activity fully transparent. With 60% of Phase 6 already completed, a clear pricing trajectory toward $0.06, and over $17 million in funding, Mutuum Finance is entering a decisive phase of its presale. Its blend of structured fundraising, active development, and utility-based tokenomics is positioning MUTM as one of the most credible under $0.05 DeFi tokens heading into the next market cycle. For more information about Mutuum Finance (MUTM) visit the links below: Website: https://www.mutuum.com Linktree: :::tip This story was published as a press release by Btcwire under HackerNoon’s Business Blogging Program. Do Your Own Research before making any financial decision. ::: \n \ \n \n

Author: Hackernoon