Crypto Market Hits Hard: ETH, SOL, and DOGE Drop 7% Amid Liquidations
By John Nada·Jan 31, 2026·2 min read
ETH, SOL, and DOGE dropped 7% as long liquidations swept through the crypto market, highlighting significant risks for traders amid tightening liquidity.
The crypto market faced a significant downturn as Ether (ETH), Solana (SOL), and DOGE slid approximately 7%, triggered by a wave of long liquidations. According to CoinDesk, ETH led the losses with about $385 million in liquidations over 24 hours, reflecting broader market stress beyond Bitcoin. Bitcoin itself saw around $188 million in liquidations. The market's instability wasn't limited to cryptocurrencies; tokenized commodities also experienced notable selloffs, particularly blockchain-based silver contracts, indicating a shift in trading dynamics amidst heightened volatility.
Liquidation data highlighted a one-sided selloff, with long positions dominating forced exits, meaning traders were largely caught off guard after weeks of price stagnation and unsuccessful dip-buying attempts. Solana and XRP each recorded over $45 million in liquidations, contributing to a total of roughly $974 million wiped out across the market. This chaos forced more than 240,000 traders out of their positions, showcasing the fragility of current market conditions.
With thinner liquidity over the weekend and waning risk appetite, the reaction felt less like panic and more like a necessary mechanical reset. Whether this situation paves the way for stabilization or leads to further declines hinges on how quickly leverage can rebuild when markets fully reopen. Keeping an eye on these dynamics will be crucial for traders moving forward.
The implications of this selloff are profound; it underscores the risks inherent in leveraged trading and the potential for rapid market shifts, reminding investors to approach the current landscape with caution.