In this issue of Coin Metrics State of the Network, we dive into the events of Friday, October 10th when crypto markets faced a tsunami of turbulence as macro headlines cascaded into the largest day of liquidations in crypto history. From pricing dislocations to leverage wipeouts and thinning liquidity, we unpack how the crash unfolded and what it reveals about the structure and stress points of today’s crypto market.
Key Takeaways:
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Over $5B in futures positions were liquidated in a single day – the largest leverage wipeout in crypto history.
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Altcoins were hit hardest, with open interest falling over 25% as liquidity evaporated across major venues.
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USDe briefly depegged to $0.67, exposing risks tied to synthetic and leveraged assets.
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Despite the chaos, core networks stayed resilient, and the event ultimately helped flush excess leverage from the system.
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