The digital asset market has experienced one of its most volatile periods in early 2026. On Sunday, February 1, a massive liquidation cascade totaling $2.58 billion swept through the ecosystem, primarily affecting long positions as Bitcoin and other major assets breached critical support levels. Amid this turbulence, XRP recorded a significant 74% surge in trading volume, reaching $6.49 billion in 24 hours.
Analysis of the Liquidation Cascade
Data from CoinGlass indicates that over 414,491 market participants were liquidated during this event. The flush was largely driven by a mechanical unwind of high-leverage positions:
- Long Liquidations: Approximately $2.27 billion of the total wipeout originated from bullish bets.
- Exchange Impact: Hyperliquid and Bybit recorded the heaviest damage, with over $1 billion in positions erased on certain venues.
- Market Catalyst: Analysts point to a combination of geopolitical tensions and a “risk-off” sentiment following shifts in U.S. monetary policy expectations, which pressured both crypto and traditional safe-haven assets.
XRP Price Action and Realized Price Support
XRP’s recent trajectory has seen it test critical technical levels. Between late January and early February, the asset hit a local low near $1.50, a level that closely aligns with its realized price of $1.48, according to Glassnode.
The realized price represents the average cost basis of all tokens in circulation. Historically, when the spot price nears this metric, the market enters a “reset” phase. While current indicators like the Relative Strength Index (RSI) show oversold conditions below 30, the asset remains in a delicate position. A failure to hold the $1.48 support could mirror structures seen in previous cycles, while a successful defense may provide a foundation for stabilization.
Emerging Trends in the GameFi Sector
As volatility impacts high-leverage major assets, capital flows have shown interest in utility-based projects with structured release schedules. Minotaurus (MTAUR) is one such GameFi asset currently in its presale phase.
The project operates on a fixed-schedule tier model, currently priced at 0.00012654 USDT. Unlike assets traded on high-leverage derivatives platforms, Minotaurus (MTAUR) follows a stage-based pricing structure:
- Current Status: The presale has raised approximately 3.08 million USDT, reaching nearly 47.87% of its $6.44 million target.
- Technical Security: The protocol has completed audits by Coinsult and SolidProof, establishing a framework for its blockchain-integrated gaming ecosystem.
- Utility: The token is designed for in-game customization, avatar upgrades, and unlocking specific zones within the Minotaurus mobile game.
Comparative Outlook for February 2026
The contrast between large-cap volatility and presale-stage utility tokens highlights different market strategies. While XRP bulls focus on defending the $1.48 cost basis amid broader market bleeding, emerging projects like Minotaurus (MTAUR) rely on hard-coded milestones and ecosystem utility rather than speculative derivatives flow. Analysts suggest that the remainder of February will be decisive in determining whether the majors can reclaim momentum or if the rotation into low-float utility assets will accelerate.
The information presented in this article is for informational purposes only and should not be construed as investment advice. Crypto Economy is not affiliated with the project. The cryptocurrency market is highly volatile and can involve significant risks. We recommend that you conduct your own analysis.
