According to CryptoQuant data from October 16, 2026, Binance saw approximately $345 million in long position liquidations during an October 8-9 sell-off. This event caused long liquidations on the exchange to rise by 47%, effectively resetting leverage and reducing the risk of a liquidation cascade.
The price of ETH dropped by roughly 10%, moving from approximately $2,775 to $2,500. Following this, Binance's share of ETH futures open interest reached about 49%, the highest level since 2023. Open interest measured in ETH rebounded to approximately 2.46 million ETH, suggesting traders are returning to the market.
Despite the cleaner structure, market conditions remain neutral due to a lack of new capital. Binance recorded a net outflow of approximately $175 million in USDT, with reserves of the stablecoin decreasing by 2.3%. Additionally, Binance ETH reserves fell by 2.4%, while the Ethereum staking rate stands at 36.1%.
Analysts are monitoring two key indicators for a potential bullish shift: a return of USDT inflows to exchanges and an increase in the Coinbase Premium. Funding rates on Binance have dropped to near zero, indicating that the market is no longer heavily reliant on leveraged long positions.
