Cardano Long Positions Suffer Massive Liquidations Amid Crypto Market Selloff

Leveraged traders holding bullish bets on Cardano (ADA) faced severe losses as a broad decline across the cryptocurrency market triggered significant derivative liquidations. Out of $4.27 million in total Cardano liquidations, bullish long positions accounted for $4.2 million, compared to just $73,080 in short positions. The sharp decline pushed ADA down to an intraday low of $0.216 before stabilizing near $0.2306.

The market pressure followed economic reports showing U.S. inflation accelerated in September, with consumer prices rising 3.7% year-over-year compared to 3.4% in August. The higher-than-anticipated inflation readings raised concerns that the Federal Reserve could implement further interest rate hikes, prompting investors to pull capital out of riskier digital assets. Across the wider crypto market, total derivative liquidations reached $913 million over a 24-hour window, largely concentrated in long positions.

On the development front, testing continues on Cardano's network scaling infrastructure. The Musashi Dojo public testnet for Ouroboros Leios recently advanced to its third phase, known as the Fire stage, which gradually increases workload levels to prepare the code for mainnet deployment. Following its eventual mainnet release, the upgrade is expected to boost Cardano's transaction capacity by 5 to 20 times.