20% Liquidity Drop: Kraken Emerges as Winner While Coinbase and Binance Lag Behind

Key Points:

• The liquidity drop of top 10 cryptocurrencies has decreased by 20% YoY, according to Kaiko.
• Among the most affected cryptocurrencies are MATIC, BTC, SOL, and TRX.
• Kraken is the only exchange to improve liquidity, while Coinbase and Binance struggle.

According to a recent study conducted by Kaiko, a leading cryptocurrency market data provider, the liquidity drop of the top 10 cryptocurrencies has experienced a significant decline this year.

The research reveals that the total market depth of these digital assets has fallen by 20% year-to-date, indicating potential challenges in the cryptocurrency market.

Among the most affected cryptocurrencies in terms of liquidity are MATIC, BTC, SOL, and TRX. These popular digital assets have experienced a notable decrease in their liquidity levels, which could have implications for traders and investors. Liquidity is a crucial factor in determining the ease with which assets can be bought or sold without significantly impacting their price.

Interestingly, the research also highlights that Kraken, one of the leading cryptocurrency exchanges, has been the only platform to witness an improvement in liquidity. This positive development may be attributed to various factors, including the exchange’s efforts to enhance its market infrastructure and attract more trading volume.

On the other hand, two major cryptocurrency exchanges, Coinbase and Binance, have experienced a decline in liquidity by approximately 25% this year. Coinbase, one of the largest and most prominent exchanges in the industry, and Binance, a popular global exchange, are facing challenges in maintaining robust liquidity levels. This decline could potentially impact the trading experience and strategies of users on these platforms.

The Kaiko research underscores the dynamic nature of the cryptocurrency market and the importance of monitoring liquidity levels. Fluctuations in liquidity can affect the efficiency of trading and the stability of cryptocurrency prices. Traders and investors are advised to stay informed about the liquidity conditions of various assets and exchanges to make well-informed decisions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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