As the cryptocurrency market experiences a correction, a surge in liquidations has been observed across the ecosystem.

Coinglass data reveals that total cryptocurrency liquidations have soared to $160.71 million within the past 24 hours. The majority of these liquidations, approximately $127.53 million, involve long positions, reflecting the market's shift in sentiment.

In contrast, only $33.18 million worth of various cryptocurrencies have been liquidated from short positions during this period.

Further analysis from Coinglass indicates that global crypto open interest has decreased by 2.95% over the past day, now resting at $69.3 billion.

Leading the list of exchanges in terms of liquidations is Binance, with approximately $75.79 million in liquidations recorded over the past day. Following closely are OKX, Bybit, and Huobi, with liquidations totaling $53.91 million, $14.23 million, and $11.32 million, respectively.

Notably, Ethereum (ETH) liquidations have surpassed those of Bitcoin (BTC), with ETH liquidations amounting to $27.81 million compared to BTC's $20.36 million. This trend is attributed to the recent approval of spot Ethereum ETFs in the U.S., which has increased trader exposure to ETH.

Meanwhile, Notcoin (NOT) has seen a surge in liquidations, totaling $6.2 million within the past 24 hours. However, the liquidations are divided, with short NOT positions accounting for $3.77 million liquidated and long positions totaling approximately $2.43 million. This discrepancy is a result of NOT's 29% price rally during the same period.

These increased liquidations coincide with a 2% decline in the global cryptocurrency market capitalization over the past 24 hours, dropping from $2.7 trillion to $2.66 trillion, as reported by CoinGecko. Additionally, total daily trading volume has decreased by 8%, currently standing at $86 billion.

Given the declining trading volume and open interest, it is expected that lower price volatility may ensue, particularly for major cryptocurrencies.