Binance Sees Altcoin Liquidations Surpass Bitcoin as Traders Bet on Altseason

In a notable shift in cryptocurrency market dynamics, altcoins have surpassed Bitcoin in total liquidations on Binance in 2025. This trend, which began earlier in the year, accelerated in July as traders increasingly leveraged volatile altcoins in anticipation of an August altseason. Both long and short positions are being liquidated at a higher rate for altcoins compared to Bitcoin, highlighting heightened speculative activity in the altcoin market. Ethereum whales have also been observed exiting positions aggressively, adding to the market volatility. This development signals a potential altseason, where altcoins may outperform Bitcoin, drawing significant attention from traders and investors on Binance.

Altcoin Liquidations Surpass Bitcoin on Binance as Traders Anticipate Altseason

Altcoins have overtaken Bitcoin in total liquidations on Binance in 2025, signaling a potential shift in market dynamics. The cumulative liquidation delta flipped in favor of altcoins early this year, with the trend accelerating in July. Both long and short positions are being wiped out as traders pile leverage into volatile tokens, betting on an August altseason.

Ethereum whales are exiting positions aggressively, with one address absorbing a $50,000 loss on stETH amid a $3.96 billion unstaking queue. Binance's dominance as the largest crypto exchange positions it at the center of this speculative frenzy, where altcoins have become the primary vehicles for traders chasing outsized returns.

While CryptoQuant data shows clear momentum building, the market remains in transition. Rising liquidation volumes and increased activity suggest growing conviction, but key indicators have yet to confirm a full-blown altseason. The coming weeks will determine whether this is the beginning of a sustained rally or another false dawn for altcoin bulls.

Ethereum's Volatility Positions It as a High-Risk, High-Reward Play Against Bitcoin

Ethereum has shown sharper downside volatility than Bitcoin in the recent market pullback, with its price dropping 8% compared to BTC's 5% decline since mid-August. This higher-beta behavior reflects ETH's sensitivity to risk-off flows and Leveraged positioning.

Futures data reveals Ethereum's exaggerated moves - Binance saw $1 billion in ETH open interest wiped out versus $750 million for BTC. Yet this volatility cuts both ways: ETH delivered 6x Bitcoin's returns in July and is outpacing again in August, suggesting compressed springs may lead to sharper rebounds.

With nearly 30% of ETH supply now staked, the network's fundamental dynamics continue diverging from Bitcoin's. The deeper pullback has effectively reset leverage, creating conditions for ETH to potentially outperform as risk appetite returns.