Liquidity Rebounds for Bitcoin and Ether, Altcoins Struggle
- Dollar depth for altcoins has decreased by about a third since January, now around $2 million at a distance of 5% from the price.
- Weekly spot trading volume on centralized exchanges averaged $279 billion in late September, down nearly two-thirds from $801 billion during the crash week.
- Spot trading volume hit a low of approximately $135 billion in August but has since doubled, still under pre-crash levels.
- Liquidity for Bitcoin and Ether has surpassed pre-crash levels, while altcoin liquidity continues to decline overall.
The liquidity crisis that struck on October 10 has seen a clear shift toward major cryptocurrencies like Bitcoin and Ether, as market makers focus on these assets amid declining altcoin interest.
With altcoin dollar depth significantly reduced and spot trading volumes remaining low at $279 billion, the trend indicates ongoing challenges for smaller cryptocurrencies moving forward.
