The cryptocurrency market faced a tumultuous period on February 1, 2026, as a staggering $2.58 billion liquidation cascade impacted numerous digital assets. This event predominantly affected long positions, particularly as Bitcoin and other major cryptocurrencies fell below crucial support levels. In the midst of this market upheaval, XRP experienced a remarkable surge, witnessing a 74% increase in its trading volume, which hit $6.49 billion within 24 hours.
According to data from CoinGlass, over 414,491 traders found themselves liquidated during this significant event. The liquidation was largely attributed to the mechanical unwinding of high-leverage positions. Notably, approximately $2.27 billion of the overall wipeout stemmed from long liquidations. The exchanges Hyperliquid and Bybit reported the most severe losses, with over $1 billion in positions being wiped out on select platforms.
Market analysts have pointed to a combination of geopolitical tensions and a “risk-off” sentiment that emerged following recent changes in U.S. monetary policy expectations. This shift has put pressure on both cryptocurrencies and traditional safe-haven assets alike.
In terms of price action, XRP has recently been navigating critical technical levels. Between late January and early February, XRP dipped to a local low of $1.50, which closely aligns with its realized price of $1.48 as noted by Glassnode. The realized price serves as the average cost basis of all tokens currently in circulation. Historically, when the spot price approaches this benchmark, the market often enters a “reset” phase. Current indicators like the Relative Strength Index (RSI), which is below 30, suggest oversold conditions, placing the asset in a precarious position. Should XRP fail to maintain the $1.48 support level, it could mimic patterns seen in previous market cycles. Conversely, a successful defense of this support might establish a foundation for market stabilization.
As major assets experience heightened volatility, there is a noticeable shift of capital toward utility-based projects featuring structured release schedules. One such project is Minotaurus (MTAUR), currently in its presale phase. This GameFi asset operates on a tiered pricing model, currently set at 0.00012654 USDT. Unlike assets typically traded on high-leverage derivatives platforms, Minotaurus adheres to a stage-based pricing structure.
As of now, the presale has successfully raised approximately 3.08 million USDT, reaching nearly 47.87% of its $6.44 million target. The project has undergone audits by Coinsult and SolidProof, ensuring a robust framework for its blockchain-integrated gaming ecosystem. The token aims to facilitate in-game customization, avatar upgrades, and unlocking specific zones within the Minotaurus mobile game.
The stark contrast between the volatility seen in large-cap cryptocurrencies and the stability offered by presale-stage utility tokens exemplifies differing market strategies. While XRP proponents concentrate on defending the $1.48 cost basis amid a broader market downturn, emerging projects like Minotaurus depend on hard-coded milestones and ecosystem utility rather than speculative trading. Analysts suggest that the remaining weeks of February will be crucial in determining whether major cryptocurrencies can regain momentum or if the trend toward low-float utility assets will continue to gain traction.
