Altcoins including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) plunged on July 23, 2025, amid a surge in derivatives leverage that amplified market volatility. Glassnode data reveals altcoin open interest soared 69% from $26 billion to a record $44 billion since early July, marking the longest streak (12 days) of daily increases exceeding two standard deviations in history. This leveraged buildup created frothy conditions, exacerbating losses as positions unwound.
XRP led declines with a 10% drop to $3.22, while DOGE fell 9% to $0.241 and SOL dipped 7% to $188. ETH slid 3% to $3,586 but dominated liquidations with $129 million wiped out—$104 million from long bets. Overall, $605 million in crypto positions were liquidated in 24 hours, including $63.4 million for XRP. The sell-off followed a two-week altcoin market cap surge of $216 billion, with ETH derivatives volume overtaking Bitcoin for the first time since 2022.
Glassnode analysts warned the leverage spike reflects "accelerating speculative positioning and rising market froth," making assets vulnerable to volatility shocks. Douro Labs CEO Mike Cahill attributed the dip to profit-taking and macro concerns but projected the bull market would persist through 2025. Despite ETH traders pricing only a 20% chance of reclaiming $4,000 by month-end, Cahill emphasized, "What we’re seeing is a small dip; I expect the crypto bull market to continue strongly."