The market capitalization of cryptography has dropped by more than 3%, with total liquidations exceeding $ 700 million, mainly from long positions. According to Rinsing737.36 million dollars in leverages were wiped out, 85.3% being long, reflecting the too optimistic feeling of traders.
The main active ingredients such as Ethereum, XRP and Solana have experienced significant losses, while coins were faced with higher decreases. The largest liquidation was a BTCUSD position of $ 2.96 million on Binance. This sale is allocated to taking advantage by retail merchants or major investors and the potential capital rotation before an expected Altcoin season.
Bitcoin remained linked to the range between $ 116,000 and $ 120,000 after reaching a summit of $ 123,218 on July 14. Traders are advised to monitor the main levels of support for signs of stabilization or additional correction. Liquidations, mainly affecting long positions, increased volatility of the signal, which can destroy the DEFI platforms.
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With $ 737.36 million in endangered leverages, the DEFI protocols deposited by guaranteed loans (for example, Aave, Makerdao) can cope with increased liquidations of sub-collateralized loans, reducing the total locked value (TVL). DEFI TVL has already shown sensitivity to market slowdowns, with an 8% drop in active portfolios reported earlier this year.
The sale, drawn by taking profits or the rotation of capital, could erode the retail and institutional trust in DEFI. The collapse of the terra ecosystem in 2022 (loss of 60 billion dollars) emphasizes how DEFI can amplify shocks on the market. However, innovations such as DEFI platforms focused on AI and Stablecoin integrations (for example, USDC) can stabilize liquidity by attracting institutional capital.
Despite the short -term setbacks, the long -term Defi perspectives remain robust. The projections believe that DEFI could become an industry of $ 231 billion by 2030, driven by loan, loan and stake innovations. The current DIP can encourage platforms to improve risk management and scalability thanks to layer 2 solutions.
Altcoins
Altcoins like Ethereum, XRP and Solana have undergone significant losses, coins with pieces of memes stronger. This reflects their higher risk profile compared to Bitcoin, as altcoins often amplify market movements. The accumulation of leverage in Altcoin derivatives (40 billion dollars of open interest) suggests a potential for additional drop if the feeling worsens.
The drop in market capitalization is aligned with capital rotation signals, potentially foreshadowing an Altcoin season. Historical models (for example, the Cup-and Math in total 3) indicate that altcoins can surpass the post-keying of Bitcoin, in particular with institutional interest for projects like Solana and Polkadot. Regulatory clarity and low interest rates could further increase the adoption of Altcoin in 2025.
Altcoins linked to DEFI, AI and tokenization (for example, Solana, SEI, Sui) are ready for growth because of their utility in evolutionary ecosystems. The high Solana transaction speeds and the expansion of DEFI / NFT ecosystems make it resound despite a recent weekly drop by 11.52%.
Non buttons (NFT)
NFTs are very sensitive to cryptography market fluctuations, because their trading is often based on cryptocurrencies like Ethereum. The drop in market capitalization reflects a drop in the NFT negotiation volume from February 2025 from 50% to $ 498 million, with a loss of capitalization of 90% since 2021. This suggests that NFT could have short -term trouble.
Despite the slowdown, the NFT evolves beyond digital art to games, music and token physical assets (for example, COURTYARD.IO). Projects such as the NFT-Metaverse initiative of the Trump organization could rekindle interest. NFTFI (NFT FINANCE) also gains ground, allowing liquidity by loans and collateralized fractionalization in NFT.
The NFT market is expected to reach $ 247.41 billion by 2029, driven by the increase in digital art demand and new standards such as ERC-1555, which reduces transaction costs. However, challenges such as low liquidity and the risks of cyber attack persist. DEFI, Altcoins and NFTS interdependence means that a slowdown in the market can be broken in these sectors. However, NFTs offer diversification because of their lowest correlation with other blockchain assets.
The global economic conditions, such as interest rate increases or commercial prices, exacerbate the volatility of cryptography, impacting DEFI, Altcoins and NFTS. Institutional adoption (for example, Goldman Sachs tokenized funds) and regulatory clarity could mitigate these risks. The projected growth of the cryptography market at 10 to 12 billions by 2030 suggests resilience. DEFI and Altcoins will likely benefit from technological progress, while NFT can bounce back through innovative applications and consumer integration.
