The cryptocurrency market capitalization has surpassed $4 trillion as it bounces back from an unprecedented leverage selloff over the weekend. Approximately $300 billion has flowed back into spot markets on Monday after a tumultuous episode triggered by over-leveraged investors.

Bitcoin and Ether have returned to more stable mid-range levels, while AI-related altcoins are soaring. Bittensor (TAO), an AI-focused token, surged by 35% to reach a peak of $410, although it remains down 46% from its historical high. Another notable token, ChainOpera AI (COAI), skyrocketed by 70% to hit an all-time high of $43.80.

Altcoins Leading the Recovery

Mantle (MNT), a DeFi platform, has also rallied with a 27% increase, recovering to $2.20. The Trump family DeFi platform (WLFI) has impressively gained 18%, reaching $14.30, as tokens associated with Binance, specifically BNB and ASTER, also saw 14% gains.

Additionally, the Binance exchange was mentioned in connection with a substantial market crash, as a market-making incident resulted in numerous tokens losing their peg, triggering widespread liquidations. The firm stated that these events occurred before the major selloff, and they have offered compensation to affected traders holding certain tokens.

In the wake of this market correction, cryptocurrencies like ETH rose by more than 8% to reclaim the $4,200 level, with XRP and Solana up by 9% and 8%, respectively. Other altcoins, such as Dogecoin and Chainlink, made significant gains as the market stabilizes.

“In the future, we’ll look back at this wick and see it as a bump before new highs.” — Michaël van de Poppe

A Healthy Flushout

Despite the brutal nature of the recent flush, Justin d’Anethan commented that it is beneficial for the market ecosystem, likening its size to earlier major downturns and emphasizing Bitcoin’s resilience.

BTC rebounded 5% from a dip below $110,000, currently trading around $115,300. This flushing of excess leverage is said to pave the way for future growth in the crypto sector.