Tokenized silver futures saw the biggest selloffs in the crypto market over the past 24 hours, surpassing bitcoin and ether in a rare reversal of the usual risk hierarchy, as a pullback in precious metals spilled over into commodity-based crypto futures.
According to CoinGlass data, 129,117 traders were liquidated over the past day, with total losses reaching $543.9 million.
Tokenized silver contracts led the wipeout, with approximately $142 million in liquidations tied to products tracking silver prices. Bitcoin followed with around $82 million, while ether received almost $139 million.
The largest liquidation order during the period occurred on Hyperliquid, where a leveraged position XYZ:SILVER-USD worth $18.1 million was forcefully closed as prices fluctuated wildly.
The move marks an unusual moment for crypto markets, where bitcoin and ether typically dominate liquidation tables. This time, traders using crypto rails to express macro views on metals were hit the hardest.
Silver prices have been under pressure after an extraordinary rally earlier this month led to sharp reversals.
Hedge funds and large speculators reduced their bullish silver positions to a 23-month low in the week ending Jan. 27, U.S. government data showed Friday, reducing net long exposure by 36%.
This decline accelerated after stock markets moved to calm volatility.
CME Group said it would increase margin requirements on gold and silver futures starting Monday, increasing collateralization requirements by up to 50% for some silver contracts. Higher margins tend to force leveraged traders to add capital or exit positions, often amplifying short-term price fluctuations.
Tokenized metals, which allow traders to gain leveraged exposure to gold, silver and copper without using traditional futures accounts, saw strong activity Friday as prices fell. These products trade 24 hours a day and require less initial capital, making them attractive during rapid macroeconomic changes.
Bitcoin’s presence lower on the liquidation list is notable.
Although BTC prices also fell during the period, the damage was less severe than that of metals-related products. Ether followed a similar pattern, with selloffs reflecting broader risk aversion sentiment rather than a single dominant unwind.
These moves show how crypto sites are increasingly being used as alternative macro trading rails. Traders not only speculate on digital assets, but express their opinions on commodities, rates and currencies using tokenized instruments that mirror traditional markets.
Whether the metals stabilize or continue to unwind may determine whether tokenized commodities remain the focal point or whether crypto’s focus returns to its usual core assets.
