Silver Futures Surge in Liquidations, Surpassing Bitcoin in Rare Market Shift
By John Nada·Jan 31, 2026·2 min read
Tokenized silver futures have overtaken Bitcoin in liquidations, marking a rare and significant shift in the crypto market. Total losses reached $543.9 million.
Tokenized silver futures dominated crypto market liquidations, eclipsing Bitcoin and Ethereum in a shocking turn of events. According to CoinDesk, the last 24 hours saw tokenized silver contracts face significant sell-offs as a downturn in precious metals clashed with heavy leverage in crypto trading. A staggering 129,117 traders were liquidated, leading to total losses of $543.9 million. Silver, with approximately $142 million in liquidations, led the charge, while Bitcoin suffered about $82 million and Ethereum nearly $139 million.
A notable liquidation order took place on Hyperliquid, where a leveraged position of $18.1 million tied to silver was forcibly closed amid volatile price swings. This unusual scenario marks a shift in crypto markets, where Bitcoin and Ethereum typically reign supreme in liquidation rankings. Instead, traders expressing macro views on metals through crypto channels faced the brunt of the fallout.
The pressure on silver prices follows an extraordinary rally earlier this month, which has since reversed sharply. Hedge funds and large speculators slashed bullish silver positions to a 23-month low, reducing net-long exposure by 36%, as reported by U.S. government data. This pullback intensified after exchanges announced plans to raise margin requirements on gold and silver futures, increasing collateral demands significantly.
Tokenized metals, allowing leveraged exposure to commodities without traditional futures accounts, saw heavy trading activity as silver prices dipped. These products, trading around the clock with lower capital requirements, became attractive during rapid macro shifts. While Bitcoin also experienced price declines, the resultant liquidations were less severe compared to those linked to metals. Ethereum followed a similar pattern, reflecting a broader risk-off sentiment rather than a singular unwind.
The current dynamics illustrate how crypto venues are evolving into alternative trading platforms for macro strategies. Traders are increasingly using digital assets to express views on commodities and currencies through tokenized instruments. The future stability of metals will likely dictate whether tokenized commodities remain a focal point or if the market shifts back to its traditional crypto assets. This shift in trading behavior underscores a significant melding of cryptocurrency and traditional commodities markets, marking a new chapter in how traders navigate financial landscapes.