Tokenized silver futures recorded the biggest liquidations across the crypto market over the past 24 hours, overtaking bitcoin and ether in a rare reversal of the usual risk hierarchy as a rebound in precious metals spilled into commodity-based crypto futures.
According to CoinGlass data, 129,117 traders were liquidated over the last day, with total losses of $543.9 million.
Tokenized silver contracts led to the wipeout, with about $142 million in liquidations linked to products that track silver prices. Bitcoin followed with around $82 million, while ether saw nearly $139 million.
The largest single liquidation order of the period occurred on Hyperliquid, where a leveraged XYZ:SILVER-USD position worth $18.1 million was forced out as prices fluctuated sharply.
The move marks an unusual moment for crypto markets, where bitcoin and ether typically dominate the liquidation tables. This time, it was traders who used crypto rails to express macro views on metals that bore the brunt of the damage.
Silver prices have been under pressure after an extraordinary rally earlier this month gave way to sharp reversals.
Hedge funds and large speculators cut bullish silver positions to a 23-month low in the week ended Jan. 27, U.S. government data showed on Friday, reducing net long exposure by 36%.
This pullback accelerated after markets moved into cooling volatility.
CME Group said it would raise margin requirements on gold and silver futures starting Monday, raising margin requirements by as much as 50% for some silver contracts. Higher margins tend to force leveraged traders to either add capital or exit positions, often amplifying short-term price swings.
Tokenized metals, which allow traders to gain leveraged exposure to gold, silver and copper without using traditional futures accounts, saw strong activity on Friday as prices fell. These products are traded around the clock and require less upfront capital, making them attractive during rapid macro shifts.
Bitcoin’s presence lower on the liquidation list is noteworthy.
While BTC prices also fell during the period, the damage was more muted compared to metal-related products. Ether followed a similar pattern, with liquidations reflecting a broader risk-off sentiment rather than a single dominant liquidation.
The moves show how crypto venues are increasingly being used as alternative macro trading rails. Traders not only speculate on digital assets, but express views on commodities, rates and currencies using tokenized instruments that mirror traditional markets.
Whether metals stabilize or continue to relax may determine whether tokenized commodities remain the focal point or whether crypto’s attention returns to its usual core assets.
