Market in turmoil! DeFi faces the second largest liquidation in history, with Solana-related tokens showing the most resilience.

The cryptocurrency market ended its recent bull party with a wave of the second largest liquidation in DeFi history. Mainstream coins experienced a pullback of over 10%, while DeFi and altcoins saw declines ranging from 10% to 30%. However, a few projects welcomed positive news and rose against the trend.

Mainstream Coins: Ethereum Drops 20% at One Point

The chart includes mainstream public chains and Binance Coin BNB, which has recently risen to become the third largest in market capitalization. Since the 21st, Ethereum, shown in blue, has experienced the deepest drop, reaching 20% at one point.

Although Bitcoin's approximately 10% drop is the lowest, it has also fallen below the significant $50,000 mark, with the price dropping more than $10,000, affecting investor sentiment.

Will Gaps Always Be Filled?

Regarding price corrections, there has always been the notion of "gap filling" in the Chicago Mercantile Exchange (CME) Bitcoin futures market. In this round of correction, the $54,000 gap previously formed by Bitcoin has been filled.

CME's unfilled gaps have been used as one of the potential bearish factors, but in reality, with the development of CME Bitcoin futures, the gaps that have yet to be filled are gradually increasing. Even looking at the weekly chart below, there are gaps even around $10,000, so it seems somewhat unrealistic for Bitcoin to experience such a large correction.

Note: CME has trading hours, but cryptocurrencies trade 24/7; therefore, if Bitcoin experiences significant volatility during CME's trading hours, gaps will be formed upon reopening.

Second Largest Liquidation in DeFi History

According to data from The Block, on the 22nd, DeFi experienced the second largest liquidation event in history, totaling over $24.1 million, with around $13.7 million coming from Compound and $5.4 million from Aave.

The largest event was the Compound attack on November 26th last year, where the significant premium of DAI led to the liquidation of over $88,400 in collateral.

Most Resilient Cryptocurrencies to Declines

Compared to mainstream coins, the returns and declines of altcoins and DeFi tokens are more significant. Previously performing well, DODO and Alpha Finance ALPHA both saw declines approaching 30%. Here are the most resilient cryptocurrencies during this pullback.

It can be observed that Raydium and Serum from the Solana ecosystem are rising against the trend, while other DeFi tokens like SushiSwap, even though resilient, have seen over a 10% increase. Messari issued a warning on February 17th, stating that altcoins would face a pullback and advised investors to hold onto mainstream coins.

It appears that Ryan Selkis was correct, although the drop in Ethereum is still deeper than some altcoins.