July 2025 will be remembered not only for the new bitcoin record - $123,218, but also for large-scale liquidations in the derivatives market. While BTC was making patient investors millionaires, the Open Interest (OI) on futures reached historical highs.
This created the basis for sharp impulses - especially for altcoins, where the situation looks much more vulnerable. Here are three tokens that were at increased risk in July.
Solana ($SOL )
The volume of open futures contracts for SOL this month reached $7.9 billion - the highest value since January, when SOL was trading at $294.
Long positions clearly dominate the market: most participants expect growth and actively use borrowed funds. This creates an imbalance that makes longs especially vulnerable to sharp pullbacks.
According to analysts, if the price falls below $150, more than $1 billion in long positions may be forcibly closed. This is only 10% below current levels, and such movements are quite possible against the backdrop of instability.
In addition, FTX's recent activity has raised new concerns: the exchange withdrew 190,000 SOL, which is equivalent to approximately $31 million. Market participants fear that this pressure will affect the price.
Ripple ($XRP )
Things are also uneasy for XRP. Open interest has approached $7.6 billion, which is only $250 million less than the January record. This confirms high interest from traders, especially against the backdrop of the latest growth.
However, market data indicates a sharp skew towards longs. Such skews in the past have often been harbingers of a deep correction.
If XRP falls below $2.5, long positions worth up to $500 million will be at risk. Considering that the token often shows daily fluctuations within 20-30%, such a scenario does not seem unlikely.
Analysts also draw attention to signs of slowing growth. More and more players may switch to profit-taking - especially in an overheated market.
Hypeliquid ($HYPE )
The HYPE project, associated with the Hyperliquid exchange, has also been in the spotlight. The volume of open contracts for the token reached $2.1 billion, which became a new record.
The ratio of longs to shorts consistently exceeds 1. This is true not only in the total volume of positions but also among top traders on top exchanges. This indicates bullish expectations but at the same time increases the risk of a catastrophic fall in case of a reversal.
The price of HYPE has been rising for six days in a row and today reached a new high. Such one-sided growth without corrections often leads to aggressive liquidations at the first pullback.
If the token falls below $43, more than $60 million in long positions could be liquidated. At the same time, HYPE often follows the dynamics of bitcoin, so even a moderate correction of BTC can trigger a chain reaction in HYPE.
The derivatives market is overheated
Coinglass recorded that the volume of Bitcoin futures trading last week was 11.5 times higher than the volume of spot transactions - this is a record figure.
The total open interest in the entire crypto market exceeded $187 billion for the first time. This indicates unprecedented trader involvement in the derivatives market. However, high activity with leverage makes the market particularly vulnerable to collapses.
In the last 24 hours alone, almost 128,000 traders were liquidated, and the total volume of forcibly closed positions exceeded $732 million.
What's next?
While the market is at the peak of euphoria, the risks are becoming more tangible. Altcoins with overheated OI and a skew towards longs are especially vulnerable. Solana, XRP and HYPE are three striking examples where a potential pullback could turn into billions of losses for traders.
Those traders who work with derivatives should be careful, limit leverage and take into account how overheated the market is at the moment. In conditions of record liquidity, the fall can be as rapid as the growth.
