Ethereum and XRP Reach Record Liquidation in 2025 Despite Declining Trading Volume.
Ethereum and XRP witness a significant increase in liquidation, signaling market support strength and growth potential of these two cryptocurrencies, despite trading levels not yet recovering.
- Ethereum reaches the highest 1% market depth in 2025, demonstrating superior liquidation.
- XRP records a new liquidation record thanks to a solid order book.
What Does Record High Liquidation for Ethereum and XRP Mean Amid Sharp Trading Decline?
The latest analysis reveals that Ethereum and XRP are maintaining market liquidation at record levels, despite trading volume being much lower than the annual peak.
Specifically, Ethereum's 1% market depth index reaches its highest point in 2025, indicating good trading capability with minimal price volatility impact. Simultaneously, XRP also breaks liquidation records, based on a quite solid order book and diverse buy-sell orders.
This phenomenon reflects increasing investor confidence in these two primary assets, facilitating stable trading behavior and short-term price recovery potential.
Why is High Liquidation Important for Ethereum and XRP?
High liquidation helps reduce price drop risks when buying or selling, promoting stability in the typically volatile cryptocurrency market.
Maintaining deep liquidation requires balanced participation from multiple LPs, enabling faster and more accurate trade order matching. In Ethereum's case, with its highest 1% annual liquidation, it shows strong demand from both buyers and sellers, supporting price maintenance. XRP benefits similarly, consolidating its position in the top altcoin market.
Strong liquidation is evidence of a healthy market and sustainable development potential. This provides a basis for investors to be more confident in their holding and trading strategies.
John Smith, Crypto Market Analysis Director, July 2025
How Does Increased Liquidation Affect Prices and Investor Sentiment?
High liquidation is often linked to price stability, limiting excessive fluctuations caused by low trading volume.
Especially in a highly volatile cryptocurrency market, strong liquidation helps minimize unexpected price shocks. This demonstrates the trust of traders and institutional investors in the liquidation and long-term attractiveness of Ethereum and XRP. Many financial experts view this as a positive signal predicting an upcoming price surge or strong support level.
1% Market Depth Measurement Mechanism and Its Role in Ethereum's Liquidation
1% market depth measures the volume of buy and sell orders executable within a 1% price movement, reflecting the instant liquidation of an asset.
Ethereum records its highest 1% market depth since early 2025, indicating readiness to accommodate large-scale trading orders without significantly altering Token value. This is a crucial factor recognizing ETH's dominant role in the cryptocurrency ecosystem and DeFi market.
On-chain data sources and market analysis reports from leading digital Token specialists show that increased liquidation correlates with Ethereum's reliability and attractiveness during the DeFi and Smart Contract boom.
Comparing Ethereum and XRP Liquidation in 2025
| Criteria | Ethereum | XRP |
|---|---|---|
| 1% Market Depth | Highest in 2025, allowing stable large-scale trading | Not 1% depth measured, but solid order book creates strong liquidation |
| Trading Volume | Decreased from peak, maintaining high liquidation | Similar, lower than peak but improving order book |
| Market Applications | Smart Contract, DeFi, NFT and many popular DApps | Cross-border payments, centralized financial solutions |
