Record Open Interest Signals Liquidation Danger for SOL, XRP, and HYPE

VISI.NEWS | CRYPTO - July 2025 is shaping up to be a month that crypto investors won’t soon forget. Bitcoin surged past the US$ 120,000 mark to hit new all-time highs, turning many patient long-term holders into millionaires.

However, the same month has also witnessed record-breaking liquidation losses. Open Interest (OI) across the crypto market has soared to historic highs, raising the risk of large-scale liquidations amid heightened price volatility—particularly in Bitcoin, Ethereum, and several key altcoins.

1. Solana (SOL)

According to Coinglass, Solana’s Open Interest reached US$7.9 billion in July—the highest since January 2025, when SOL peaked at US$ 294.

The liquidation heatmap for SOL reveals a significant imbalance between long and short positions. Most traders are betting on further short-term gains, heavily favoring leveraged long positions.

As a result, if SOL drops below US$ 150, over US$ 1 billion in long positions could be wiped out—more than 10% below its current price of US$ 167 (at the time of publication).

While Solana’s long-term technicals remain bullish, recent reports from BeInCrypto show FTX offloaded nearly 190,000 SOL—worth around US$31 million—likely due to increasing creditor pressure. The move has raised concerns over market impact.

2. XRP

XRP's Open Interest climbed to US$ 7.6 billion by the third week of July, just US$ 250 million short of its all-time high.

XRP’s liquidation map also highlights an overweight on the long side, with traders expecting upward price movement. However, should XRP fall below US$ 2.50, up to US$ 500 million in long positions could be liquidated.

Historically, XRP is known for high daily volatility—swings of 20% to 30%—and recent analyses suggest that the rally could be losing steam, with some traders likely preparing to lock in profits.

3. Hypeliquid (HYPE)

Hypeliquid (HYPE) reached a record US$ 2.1 billion in Open Interest this month. Long/Short ratios on Binance and OKX show a bullish short-term bias, with traders aggressively pursuing long positions.

The price of HYPE has risen for six consecutive days, hitting a new peak on TradingView. However, this sharp rally has increased the risk of liquidation. If HYPE drops below US$ 43, over US$ 60 million in long positions could be at risk.

With HYPE’s price trending in parallel with Bitcoin, any major correction in BTC (now above US$ 122,000) could trigger an amplified selloff in HYPE, leading to cascading liquidations.

Derivatives Market Is Red-Hot—and Risky

Coinglass reports that Bitcoin futures volume last week was over 10 times greater than spot trading volume. The perpetual futures-to-spot ratio reached a record 11.5—indicating an extremely leveraged market.

Total crypto market Open Interest hit an all-time high of over US$ 187 billion on July 14, reflecting surging investor participation in both Bitcoin and altcoins.

Despite the bullish market, this shift toward derivatives suggests growing vulnerability. According to Coinglass, 127,894 traders were liquidated in the last 24 hours alone, with total losses exceeding US$ 732.59 million—mostly from short positions.

At the time of writing, 24-hour liquidation volume had already surpassed US$700 million, signaling that the risk of deeper wipeouts still looms. @ffr