Find crypto assets with high liquidation-to-market-cap ratio

# High-Leverage Liquidation Analysis: Over-Extended Assets ## TL;DR Market-wide liquidation cascade of **$296.06M** over 24 hours (ending 2026-01-07 23:17 UTC) revealed severe over-leveraging across crypto markets, with **85% longs liquidated** during -3% to -15% price moves. **FARTCOIN** leads with extreme **1.90% liq/mcap ratio** ($7.88M liquidations on $414M market cap), followed by smaller-cap memecoins and emerging L1s showing **0.4-0.96% ratios**—indicating positioning imbalances 10-50x higher than major assets like BTC (0.004%) and ETH (0.022%). --- ## Market Context: Downside Cascade Flushes Over-Levered Longs **Total 24h Liquidations**: $296.06M across 98,299 traders (2026-01-06 23:17 UTC to 2026-01-07 23:17 UTC) **Directional Bias**: - **Longs**: $251.51M (85%) - **Shorts**: $44.55M (15%) **Interpretation**: Broad-based downside pressure flushed over-leveraged bullish positions across exchanges (Binance, Bybit, OKX, Hyperliquid). Assets with highest liq/mcap ratios show acute stress—primarily smaller-cap memecoins and volatile altcoins experiencing -5% to -15% 24h declines. --- ## Top 15 Assets Ranked by Liquidation-to-Market-Cap Ratio | Rank | Asset | Market Cap | 24h Total Liqs | Liq/MCap Ratio | Long Liqs | Short Liqs | 24h Price Change | 24h Volume | |------|-------|------------|----------------|----------------|-----------|------------|------------------|------------| | 1 | **FARTCOIN** | $414M | $7.88M | **1.90%** | $7.47M (95%) | $0.41M (5%) | -9.4% to -9.9% | $137M | | 2 | **XPL (Plasma)** | $370M | $3.10M | **0.84%** | $2.96M (95%) | $0.14M (5%) | -13.6% to -13.9% | $166M | | 3 | **SPK (Spark)** | $55M | $0.44M | **0.80%** | $0.25M (58%) | $0.19M (42%) | -3.3% | $94M | | 4 | **GIGGLE** | $63M | $0.48M | **0.76%** | $0.47M (98%) | $0.01M (2%) | -12.2% | $41M | | 5 | **PUMP** | $821M | $6.39M | **0.78%** | $6.18M (97%) | $0.21M (3%) | -8.9% to -11.6% | $150M | | 6 | **RIVER** | $334M | $2.38M | **0.71%** | $1.26M (53%) | $1.13M (47%) | -7.6% to -11.4% | $41M | | 7 | **PIPPIN** | $280M | $1.70M | **0.61%** | $1.30M (76%) | $0.40M (24%) | -15.6% | $36M | | 8 | **WIF** | $391M | $1.60M | **0.41%** | $1.48M (92%) | $0.13M (8%) | -7.5% to -9.5% | $202M | | 9 | **JASMY** | $409M | $1.09M | **0.27%** | $0.70M (64%) | $0.39M (36%) | -11.7% to -14.2% | $125M | | 10 | **PENGU** | $755M | $1.10M | **0.15%** | $0.73M (66%) | $0.38M (34%) | -8.8% to -8.9% | $219M | | 11 | **PEPE** | $2.75B | $3.84M | **0.14%** | $2.06M (54%) | $1.78M (46%) | -1.2% to +1.4% | $913M | | 12 | **ENA (Ethena)** | $1.87B | $1.93M | **0.10%** | $1.91M (99%) | $0.02M (1%) | -7.5% to -9.3% | $240M | | 13 | **SUI** | $6.88B | $4.36M | **0.063%** | $3.83M (65%) | $2.05M (35%) | -3.7% to -5.8% | $1.18B | | 14 | **ZEC** | $7.82B | $3.99M | **0.051%** | $3.79M (95%) | $0.20M (5%) | -5.4% to -6.5% | $584M | | 15 | **ASTER** | $1.74B | $0.76M | **0.044%** | $1.42M (94%) | $0.09M (6%) | -5.6% to -6.6% | $155M | **Reference Context (Major Assets)**: - **DOGE**: 0.05% ratio ($11.58M / $24.6B) - **SOL**: 0.03% ratio ($25.45M / $76.8B) - **ETH**: 0.03% ratio ($113.69M / $379B) - **XRP**: 0.02% ratio ($28.97M / $131B) --- ## Key Patterns & Over-Leveraging Signals ### **1. Extreme Long Bias in High-Ratio Assets** - **Top 10 assets average 80%+ long liquidations** during downside moves - **FARTCOIN, PUMP, XPL, GIGGLE**: 95%+ long liquidations indicate one-sided bullish over-leveraging - **RIVER, PEPE**: Balanced 50/50 long/short splits suggest more symmetric positioning stress ### **2. Volatility Correlation** High liq/mcap ratios correlate with sharp 24h declines: - **FARTCOIN** (-9.9%): 1.90% ratio <reference tool_id="call_61709352" category="heatmap" project="FARTCOIN" description="FARTCOIN OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> - **PIPPIN** (-15.6%): 0.61% ratio - **XPL** (-13.9%): 0.84% ratio <reference tool_id="call_05635201" category="heatmap" project="XPL" description="XPL OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> - **JASMY** (-14.2%): 0.27% ratio ### **3. Open Interest Contraction** 24h OI changes signal leverage unwind: - **FARTCOIN**: -13.2% OI decline ($309M remaining) <reference tool_id="call_61709352" category="heatmap" project="FARTCOIN" description="FARTCOIN OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> - **XPL**: -16.6% OI decline ($240M remaining) <reference tool_id="call_05635201" category="heatmap" project="XPL" description="XPL OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> - **WIF**: -7.6% OI decline ($216M remaining) <reference tool_id="call_25154636" category="heatmap" project="WIF" description="WIF OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> - **PUMP**: -5.0% OI decline ($221M remaining) <reference tool_id="call_42493733" category="heatmap" project="PUMP" description=PUMP OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> ### **4. Liquidation Cascade Risk (FARTCOIN Example)** <reference tool_id="call_01405607" category="mix_bar_line_liquidation" project="FARTCOIN" description="FARTCOIN liquidation risk map by price level and exchange (1d period) at 2026-01-07 23:17 UTC"/> - **Long clusters** below current price ($0.41): $6.94M cumulative at $0.384, $5.08M at $0.40 - **Short clusters** above current price: $0.81M at $0.449, escalating to $8.1M at $0.42+ levels - **Implication**: Further downside could trigger additional $6-7M long liquidations; upside squeeze potential exists above $0.42 ### **5. Funding Rate Dynamics** Predominantly **positive funding (0.001-0.091)** across Binance, Bybit, OKX, Hyperliquid indicates longs still paying shorts despite liquidations—persistent bullish positioning despite recent flush. ### **6. Asset Category Clustering** **Highest ratios (0.4-1.9%)**: - **Memecoins**: FARTCOIN, GIGGLE, PIPPIN, WIF, PEPE - **Emerging L1s**: XPL (Plasma) - **DeFi protocols**: SPK (Spark), RIVER **Lower ratios (0.04-0.1%)**: - **Established L1s**: SUI, ASTER - **Privacy coins**: ZEC - **Stablecoins/DeFi blue-chips**: ENA (Ethena) --- ## Trading Implications & Opportunities ### **Mean-Reversion Potential** Assets with **extreme long liquidations (95%+)** and **OI contraction (-10% to -16%)** may see: - **Short-term relief bounce** as over-leveraged positions cleared - **Reduced selling pressure** from forced liquidations - **Candidates**: FARTCOIN, PUMP, XPL, GIGGLE **Risk**: Continued negative sentiment or macro headwinds could extend declines despite liquidation flush. ### **Continuation Risk** Assets with **balanced liquidations (50/50)** suggest: - **Neutral positioning** post-flush - **Directional breakout potential** depending on broader market catalysts - **Candidates**: RIVER, PEPE <reference tool_id="call_21617437" category="heatmap" project="PEPE" description="PEPE OI USD and 24h change percent by exchange at 2026-01-07 23:17 UTC"/> ### **Volatility Plays** High liq/mcap ratios + elevated ATR (10-22% of price) indicate: - **Active options/perpetual trading opportunities** - **High slippage risk** on large orders - **Suitable for directional momentum strategies**, not capital preservation --- ## Conclusions 1. **Systemic Over-Leveraging**: Top 15 assets show liq/mcap ratios **10-475x higher** than BTC/ETH benchmarks, concentrated in smaller-cap memecoins and emerging protocols. 2. **Long Positioning Exhaustion**: 85% long bias in liquidations signals **bullish over-extension** flushed during -3% to -15% declines; reduced leverage overhang may support near-term stabilization. 3. **Tiered Risk Profile**: - **Extreme stress (1.0%+ ratios)**: FARTCOIN, XPL—high mean-reversion potential but volatile - **Moderate stress (0.4-0.8% ratios)**: PUMP, RIVER, PIPPIN, WIF—balanced risk/reward - **Established assets (<0.1% ratios)**: ENA, SUI, ZEC—lower relative stress but larger absolute liquidations 4. **Cascade Cleared**: $296M liquidation event likely removed significant over-leverage from system, creating **potential entry opportunity** for risk-tolerant traders on assets showing extreme long flush + OI contraction. **Recommendation**: Monitor funding rates (returning to neutral) and OI stabilization as confirmation signals before establishing directional exposure. Assets with 95%+ long liquidations + 10%+ OI drops warrant watchlisting for mean-reversion setups within 24-72 hours.