Institutional Frenzy Triggers MYX's $46.89M Liquidation Tsunami

MYX Finance, a decentralized exchange for perpetual derivatives, has experienced one of the most volatile 24-hour periods in its history, with over $46.89 million in user positions liquidated, according to data from Coinglass. This marks the largest liquidation event on the platform since its launch and has positioned MYX as the leading performer in crypto-related liquidations for the period. The sudden drop in open interest and price volatility has raised concerns among traders and analysts about the sustainability of recent bullish momentum.

Earlier in the week, MYX’s native token had surged by over 173% in a 24-hour period, reaching a fully diluted valuation near $3 billion. The token’s rapid appreciation was attributed to a spike in trading volume across the platform, which exceeded $250 million in a single day. Bitcoin and Ethereum trading pairs led the activity, with Bitcoin trading volume reaching $160 million and Ethereum at $122 million, while smaller pairs showed significantly less movement. The surge in token value has been interpreted as a strong appetite from institutional and venture capital participants for new perpetual decentralized exchange (DEX) projects.

According to data from Tokenix, funding rates on MYX perpetual contracts spiked to as high as +80% before stabilizing around -31%. These figures reflect aggressive long positioning, suggesting traders were heavily betting on further upward price movement. Open interest also surged sharply during the rally, with Binance reporting a futures open interest (OI) of $101.6 million and Bybit at $42.5 million. However, such a rapid buildup of positions raises the risk of a liquidation cascade should the price fall.

Market analysts have highlighted that the recent price movement of MYX was not entirely organic, with some suggesting it was driven by coordinated buying from institutional players. A 4-hour chart from TradingView shows a decisive breakout from a range that had persisted for weeks, with the token breaking out of a narrow band between $1.20 and $1.40 and climbing to $3.60 within a single hour. At the time of reporting, MYX was trading near $3.50, just below its intraday high.

Despite the optimism surrounding the project’s innovative features—such as the “Matching Pool Mechanism” designed to reduce slippage and the ability to trade across multiple blockchains—market participants remain cautious. The recent liquidation event underscores the inherent risks of leveraged trading in rapidly moving markets, particularly in newly launched decentralized platforms. Analysts warn that while the project has demonstrated significant short-term appeal, long-term adoption will depend on continued user trust and platform stability.

Source: [1] What is MYX Crypto? Why did MYX Price Just Blast +173%? (https://finance.yahoo.com/news/myx-crypto-why-did-myx-111950429.html)