According to BlockBeats, on September 6, CoinDesk reported that since the launch of the Bitcoin spot ETF on January 11, the boost in liquidity has been fully reflected in the Bitcoin market. The situation is different for Ethereum. According to CCData tracking data, Ethereum’s order liquidity has declined since the debut of 9 ETFs on July 23. The average 5% market depth of ETH currency pairs on centralized trading platforms in the United States has fallen by 20% to about US$14 million. In other words, it is now actually easier to move the spot price by 5% in either direction, which is a sign of reduced liquidity and increased sensitivity to large orders. CCData believes that poor market conditions and seasonal effects are the culprits.
Jacob Joseph, a research analyst at CCData, said: “While market liquidity for ETH pairs on centralized exchanges is still higher than at the beginning of the year, liquidity has fallen nearly 45% since its peak in June.” The metric refers to the amount of buy and sell orders within 5% of the mid-market price of an asset. The greater the depth, the stronger the liquidity and the lower the slippage cost. CCData counted 5% market depth for all ETH pairs on 30 centralized exchanges. Data tracked by Farside Investors shows that Ethereum spot ETFs have accumulated outflows of more than $500 million since July 23. Ethereum prices have fallen more than 25% to $2,380.
