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Hyperliquid faces $4M loss after ETH whale wipeout |
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Key points: |
Hyperliquid suffered a $4 million loss due to a high-leverage Ethereum trade, leading to a net outflow of $166 million from the platform. Bybit CEO Ben Zhou suggested reducing leverage dynamically as positions grow to prevent similar losses, highlighting the risks of decentralized exchanges (DEXs).
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News - Hyperliquid, a decentralized perpetual futures exchange, faced its second-largest single-day outflow on March 12 after an Ethereum whale liquidation caused a $4 million bad debt in its liquidity vault. The event triggered investor panic, leading to a net withdrawal of $166 million from the platform. |
Despite rumors of an exploit, Hyperliquid confirmed that the loss was due to market mechanics rather than a hack, as a heavily leveraged trader manipulated their position to avoid direct liquidation losses. In response, Hyperliquid reduced leverage limits, capping Bitcoin leverage at 40x and Ethereum at 25x to strengthen risk management. |
How the $4M loss happened - The whale opened a 50x leveraged position, turning a $10 million collateral into a $270 million long trade on ETH. As the market moved unfavorably, the trader strategically exited parts of the position while leaving Hyperliquid's vault to absorb the losses. |
Crypto security firm Three Sigma described the incident as a "brutal game of liquidity mechanics", emphasizing that the protocol was not exploited but rather struggled with the trade size. The incident has raised concerns about the ability of DEXs to manage high-risk trades effectively. |
Bybit CEO suggests a fix - Bybit CEO Ben Zhou weighed in on the situation, stating that centralized exchanges (CEXs) face similar issues. He suggested implementing a dynamic leverage model, where leverage reduces as positions grow, to mitigate risks while maintaining user engagement. |
Zhou also warned that even with reduced leverage limits, traders could exploit multiple accounts, making advanced monitoring and surveillance necessary for risk management on DEXs. |
HYPE token takes a hit - The fallout has negatively impacted Hyperliquid's native token, HYPE, which has dropped over 50% from its December highs. With bearish indicators such as RSI at 23.52 and declining social dominance, analysts predict further downside unless HYPE can reclaim key resistance at $15.06. |
While Hyperliquid attempts to restore confidence, investors remain cautious, closely watching how the platform adapts its risk management to avoid similar losses in the future. |
PEPE soars 11% as whales trigger massive buying spree |
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Key points: |
PEPE surged 11% in the last 24 hours, outpacing Dogecoin and Shiba Inu. Whale wallets acquired 689.79 billion PEPE ($5 million), fueling demand and a trading volume spike.
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News - The frog-themed meme coin PEPE has surged by 11% in the past 24 hours, significantly outperforming leading meme assets like Dogecoin (DOGE) and Shiba Inu (SHIB), which posted modest gains of 3% and 1%, respectively. |
This rally comes amid a wave of substantial whale acquisitions that have sparked renewed investor interest and increased trading activity. According to on-chain data from Lookonchain, three major wallets recently purchased 689.79 billion PEPE, worth $5 million. The largest buyer, wallet 0x7A7D, alone acquired 437.7 billion PEPE for 1,413.4 ETH ($2.72 million). |
These purchases, funded through Tornado Cash, have triggered speculation about the source of the funds but have undoubtedly pushed PEPE's price higher. The token's daily trading volume has also increased by 18%, surpassing $1.05 billion. |
Market impact - The surge in PEPE's price is accompanied by an increase in open interest (OI) in its futures market. Currently, OI stands at $120 million, marking a 21% rise in the past 24 hours. This reflects heightened capital inflows and growing market participation, a strong indicator of sustained bullish momentum. |
Moreover, PEPE's Elder-Ray Index has turned positive for the first time since January 19, reinforcing the strength of the current rally. The indicator, which analyzes the power of bulls and bears in the market, suggests that buyers are in control, increasing the likelihood of further gains. |
What's next? - If PEPE maintains its momentum, it could break past the $0.0000083 resistance level and extend its rally. However, if buying pressure weakens, the meme coin risks dropping below $0.0000062, potentially sliding further to $0.0000048. |
For now, with increasing demand, whale activity, and a bullish market structure, PEPE bulls remain in control, making the meme coin one to watch in the coming days. |
Trump family in talks to acquire stake in Binance.US: What's the real story? |
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Key points: |
Reports indicate the Trump family discussed acquiring a stake in Binance.US, possibly through their crypto venture, World Liberty Financial. Former Binance CEO Changpeng 'CZ' Zhao denied involvement, but speculation remains about a potential pardon request. The news triggered a 5% surge in BNB price, pushing it above $600.
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News - The Trump family reportedly engaged in discussions about acquiring a stake in Binance.US, according to a Wall Street Journal report. The negotiations allegedly involved World Liberty Financial (WLFI), a Trump-backed crypto project, and Steve Witkoff, a known associate of President Trump. The talks began after Binance sought to reestablish itself in the U.S. following regulatory hurdles during the Biden administration. |
Binance founder Changpeng 'CZ' Zhao denied any discussions regarding the deal, stating on X that the WSJ "got the facts wrong." However, the report also claims that Zhao was seeking a presidential pardon, a claim he neither confirmed nor denied. Trump himself dismissed the WSJ's credibility, calling it influenced by "globalist" interests. |
Despite the controversy, the report has stirred speculation about the future of Binance in the U.S. and the potential influence of the Trump administration on crypto regulation. |
Trump and Binance: A political and financial crossroads? - The Trump family's involvement in crypto has grown significantly, with multiple ventures tied to the industry. Trump's own Official Trump (TRUMP) memecoin and the broader WLFI project have positioned the former president as a pro-crypto leader. Reports suggest that securing a stake in Binance.US could be part of a broader strategy to further legitimize crypto under the Trump administration. |
The potential deal has sparked mixed reactions. Some in the crypto community see it as a sign of mainstream adoption, while others fear it could introduce conflicts of interest, especially as Binance remains under regulatory scrutiny. |
BNB price reacts to the news - BNB, the native token of the Binance ecosystem, responded positively to the news, surging 5% and crossing the $600 mark for the first time in a week. Investors see a potential Binance-Trump alliance as a bullish catalyst, even as uncertainties around regulation persist. |
While no official confirmation has been made, the reported discussions indicate that crypto's role in U.S. politics and finance is only growing. Whether this results in a significant stake acquisition or remains speculation, the implications for Binance and the broader market remain substantial. |
Stablecoin wars: Banks take on USDT & USDC |
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Key points: |
Traditional banks, including BBVA and Standard Chartered, are planning to launch their own stablecoins, posing competition to Tether (USDT) and Circle (USDC). Stricter regulations under the EU's MiCA framework and upcoming U.S. laws could force stablecoin issuers to enhance transparency and reserves.
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News - Stablecoins are no longer just a crypto-native phenomenon—traditional financial institutions are now preparing to enter the market. Major banks, including BBVA, Standard Chartered, and Bank of America, are exploring their own stablecoin projects, challenging the dominance of Tether and Circle. |
The shift comes as stablecoin adoption soars, with total transaction volumes hitting $15.6 trillion in 2024—exceeding Visa's annual volume. However, upcoming regulations in the U.S. and Europe could redefine the landscape for existing stablecoin issuers. |
Traditional banks enter the stablecoin race - Financial institutions are increasingly looking to develop stablecoins to enhance cross-border transactions and digital payments. PayPal has already launched PYUSD, while Visa is working on a tokenized asset platform. Bank of America is reportedly preparing its own stablecoin, contingent on regulatory approval. |
BlackRock, Franklin Templeton, and Fidelity have also entered the space through tokenized money market funds, offering alternatives that could compete with USDT and USDC. |
Regulatory pressure on Tether and Circle - With upcoming regulations, stablecoin issuers face mounting scrutiny. The EU's MiCA framework will require stablecoins to operate under banking-like standards, while the U.S. is considering bills like FIT21 and STABLE, which could impose stricter reserve and audit requirements. |
Tether has already opted out of the European market to avoid compliance with MiCA. Meanwhile, PitchBook analyst Robert Le has raised concerns about centralization risks, arguing that stablecoin issuers controlling minting and redemption could face regulatory pressure to freeze assets or halt redemptions. |
USDT demand hits six-month high amid market uncertainty - On-chain data from Santiment reveals that USDT activity reached its highest level in six months, with over 143,000 wallets transacting on March 11. Analysts suggest traders are holding USDT as a safe-haven asset amid market volatility, preparing for potential buying opportunities. |
Vincent Liu, CIO at Kronos Research, believes the surge in USDT activity is a bullish sign, reflecting significant capital on the sidelines. However, macroeconomic conditions, regulatory uncertainty, and geopolitical factors will determine the broader crypto market's recovery. |
Tether CEO speaks on market evolution - Paolo Ardoino, CEO of Tether, recently spoke at the Cantor Fitzgerald Global Technology Conference, highlighting Tether's role as a "last stronghold" for the U.S. dollar in global transactions. He noted that around 37% of USDT users rely on stablecoins as a savings account due to lack of access to traditional banking services. |
Tether has also collaborated with law enforcement, freezing over $2.5 billion in illicit funds across 170 operations. Despite scrutiny from regulators, the company maintains that stablecoins are essential for financial stability in regions with economic uncertainty. |
What's next? - As stablecoin adoption grows, competition is heating up between crypto-native issuers and traditional financial institutions. With banks entering the market and regulators tightening controls, the stablecoin landscape could shift dramatically in the coming years. |
While Tether and Circle currently dominate, industry experts predict that only a handful of issuers with strong regulatory backing and technological reliability will ultimately capture the majority of the market. For now, all eyes are on upcoming U.S. regulations and how they shape the future of stablecoins. |
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More stories from the crypto ecosystem |
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Interesting facts |
Bitcoin surged to an all-time high of $103,853 in December 2024, driven by institutional adoption and ETF inflows. However, by March 2025, its price dropped nearly 20%, falling to around $82,937, impacting new investors who entered during the peak. Coinbase is re-entering India after securing approval from the Financial Intelligence Unit, signaling a shift in the country's crypto stance. Initially focusing on retail services, the exchange plans to expand into investment products. The Bank of Russia has proposed a limited crypto investment pilot for high-net-worth individuals, marking a shift from its previous anti-crypto stance. If approved, the initiative would allow controlled access to digital assets within a regulated framework.
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Top 3 coins of the day |
Stellar (XLM) |
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Key points: |
At press time, XLM was trading at $0.28, reflecting a 10.02% increase over the last 24 hours. The Parabolic SAR indicated a potential trend reversal, while the RSI moved closer to the neutral 50 mark.
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What you should know: |
XLM saw a strong bullish surge, climbing by over 10% in the past 24 hours. This rally came after the price bounced from its recent low near $0.25. The Parabolic SAR dots, previously positioned above the candlesticks, shifted below them, signaling a possible shift in momentum from bearish to bullish. Meanwhile, the RSI stood at 46.10, suggesting that XLM had exited oversold territory but had yet to enter an overbought phase. Trading volume saw an uptick, hinting at growing buyer interest. However, resistance near $0.30 remains a key level to watch. If buying pressure continues, XLM could push toward the $0.35 zone, while a rejection at resistance might lead to a retest of $0.26 as support. |
BNB (BNB) |
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Key points: |
At press time, BNB was trading at $583, reflecting a 2.45% increase over the last 24 hours. The 9-day SMA suggested a potential recovery, while the DMI signaled ongoing market uncertainty.
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What you should know: |
BNB posted a modest recovery over the past 24 hours following a period of price weakness. The 9-day SMA, currently at $574, indicated that BNB was attempting to reclaim short-term bullish momentum. However, the price remained below key resistance levels, suggesting that buyers needed more momentum to confirm a trend reversal. The Directional Movement Index (DMI) painted a mixed picture, with the +DI (bullish strength) and -DI (bearish strength) remaining close together, signaling that buyers and sellers were battling for control. Meanwhile, the trading volume saw an uptick, likely influenced by Binance's recent $2 billion deal, which has fueled market optimism. In the short term, BNB faces key resistance at $600, and a break above this level could drive it toward the $630-$650 range. However, failure to hold current levels could lead to a retest of the $560 support zone. |
Hyperliquid (HYPE) |
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Key points: |
At press time, HYPE was trading at $12.14, reflecting a 7.71% decline over the last 24 hours. The 9-day SMA showed continued downward pressure, while the CMF indicated weakening capital inflows.
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What you should know: |
HYPE suffered another steep decline, dropping over 7% in a single day as bearish momentum continued. The 9-day SMA, positioned at $14.42, remained above the price, reinforcing the ongoing downtrend. The Chaikin Money Flow (CMF) indicator further highlighted weakening capital inflows, sitting at -0.11, suggesting that selling pressure outweighed buying interest. This decline followed large capital outflows from the Hyperliquid ecosystem, driven in part by Ethereum whale liquidations, which triggered wider market concerns regarding stability. In the short term, HYPE's next critical support lies at $10, and a breakdown below this level could push it toward single-digit prices. However, a recovery above $15 could help the asset regain lost ground. |
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