FTX Traders Beware: 3 Altcoins Facing Major Liquidation Risks in July 2025

July 2025 has seen unprecedented liquidation losses in the cryptocurrency market, with Open Interest volumes reaching historic highs. While Bitcoin and Ethereum dominate headlines, several altcoins are now presenting significant risks to derivatives traders due to heightened price volatility. Among these, Solana stands out with its Open Interest soaring to $7.9 billion, a level not seen since January 2025 when SOL reached its peak price of $294. The current liquidation map reveals a concerning imbalance, with traders heavily positioned on the long side, amounting to $1 billion in exposure. This article delves into the three altcoins most vulnerable to major liquidations this month, offering insights for FTX traders navigating these turbulent markets.

3 Altcoins at Risk of Major Liquidations in July

July witnessed record-setting liquidation losses as Open Interest volumes surged to historic highs. Beyond Bitcoin and Ethereum, several altcoins now pose significant risks to derivatives traders amid escalating price volatility.

Solana's Open Interest hit $7.9 billion in July, its highest level since January 2025 when SOL peaked at $294. The liquidation map reveals a dangerous imbalance—traders are overwhelmingly long, with $1 billion in positions vulnerable if SOL drops below $150. This comes despite solana flashing a bullish five-year signal, as FTX's unstaking of 190,000 SOL ($31 million) fuels market anxiety.

XRP shows similar warning signs, with $7.6 billion in Open Interest approaching January's record. Like Solana, the market leans heavily long, creating asymmetric risk if sentiment reverses.

US Lawmaker Warns More FTX-Style Crashes Coming Without Crypto CLARITY

US lawmakers are pushing for decisive crypto legislation to prevent another market collapse akin to FTX's downfall. The CLARITY Act, introduced in late June, aims to establish a robust regulatory framework for digital assets. Republican Representative French Hill starkly warned that without such measures, the industry remains vulnerable to catastrophic failures.

The proposed bill mandates strict consumer protections, including segregation of customer funds—a direct response to FTX's misuse of client deposits. Capital requirements and transparency protocols WOULD force firms to maintain adequate reserves and audit trails. "The current ad hoc approach invites disaster," Hill asserted during Monday's House Rules Committee hearing.

Three critical bills dominated the discussion: the CLARITY Act, GENIUS Act, and Anti-CBDC Surveillance State Act. These legislative efforts signal Washington's growing recognition of crypto's systemic importance—and the urgent need to mitigate risks before the next crisis erupts.