The contract market for XPL has gone completely insane. The total open interest across the network has surpassed $1.7 billion, surging 26% in 24 hours, reaching an all-time high. Binance alone accounts for $480 million, indicating that the main funds are battling it out here.
Even more exciting are the liquidation data. $31.24 million was liquidated in 24 hours, with both long and short positions liquidated, where short positions accounted for $17.04 million, slightly higher than long positions. What does this indicate? There is a huge divergence in the market, with both sides desperately increasing their positions, neither side willing to back down.
The performance of the Korean market is particularly crazy. The XPL/KRW trading pair on Upbit accounts for nearly 20% of the trading volume in the Korean won market, showcasing the speculative enthusiasm of Korean retail investors. This type of market, dominated by Asian funds, tends to be more volatile, coming quickly and leaving just as fast.
1.12 billion units of open interest means that a large portion of the circulating supply is locked in contracts. This is a double-edged sword, as it can amplify gains but also exacerbate losses. At this position, it is advised that ordinary investors stay away from high leverage. If you really want to participate, try low leverage with a small position; don't stake your life savings on it. Remember, in the contract market, it's always a minority that makes money, while the majority's money ultimately turns into fees and liquidation statistics. $XPL
