Lisk (LSK) experienced extreme volatility on Sunday, surging over 500% before losing most of its gains. The token price climbed above $2, marking a 900% increase from its August lows, but currently trades near $0.80.
The price spike triggered $41.13 million in liquidations within 24 hours, making it the largest liquidation event in the crypto market for that period. Short sellers accounted for $33.68 million of the total, while long positions saw $7.44 million in liquidations.
The rally was driven by forced buying as short sellers repurchased tokens to cover positions. Open interest in futures reached approximately $42 million, with daily futures turnover hitting $501 million. Binance previously flagged Lisk with a monitoring tag in July due to volatility.
Market activity follows an August 25 announcement regarding the planned shutdown of the Lisk blockchain on October 31. The project intends to transition into a stablecoin payments service, which includes a proposal to burn 100 million LSK tokens, though holders have not yet voted on this measure.
Users holding assets on the original Lisk chain must bridge their funds to Ethereum or Base before the October 31 deadline. The withdrawal process takes approximately 8 days, with an additional 3-day waiting period for unstaking. LSK remains 97% below its 2018 peak.
