Over the past week, the cryptocurrency market experienced a significant shakeout, with over $13 million in leveraged positions liquidated, primarily affecting altcoins. This event was triggered by a surge in leveraged trading, as open interest in altcoin derivatives reached an all-time high of $45 billion. Such elevated levels of leverage made the market particularly vulnerable to sudden price movements.

Ethereum (ETH) was the most impacted, with approximately $7.95 million in long positions liquidated. Other notable losses included Bitcoin (BTC) at $2.2 million, Dogecoin (DOGE) at $1.55 million, and Ethena (ENA) at $1.17 million. Solana (SOL) also faced significant liquidations, though under $1 million.

The rapid unwinding of these positions underscores the risks associated with high leverage in volatile markets. Analysts caution that unless leverage levels decrease, the market may continue to experience heightened volatility. Investors are advised to exercise caution and consider the potential risks of leveraged trading, especially in the altcoin sector.