According to new study from Kaiko, the so-called “Alameda Gap” in cryptocurrency liquidity on centralized exchanges is beginning to narrow owing to Binance<\/a>.<\/p>\n\n\n\n

Early this month, Alameda Research, the hedge fund division of Sam Bankman-since-defunct Fried’s FTX, stopped trading, which resulted in a sharp decline in the depth of the cryptocurrency market. According to a report released by Kaiko on Monday, other market makers did the same, driving liquidity to extremely low levels not seen since early June.<\/p>\n\n\n\n

The total amount of BTC within 2% of the mid price rose from 6.8k to 9.1k over the course of the past week, which is encouraging, according to Kaiko experts. Market depth has expanded from $112 million to $150 million in dollars, which shows that market makers are gradually moving funds between exchanges.<\/p>\n\n\n\n

Market participants on several exchanges are still afraid of volatility, as evidenced by bid-ask spreads; analysts stated that spreads for BTC-USD pairs “on most exchanges have not yet recovered.”<\/p>\n\n\n\n

Analysts caution that the minor increase in liquidity levels may not hold for long. According to last week’s bankruptcy papers, FTX owes a total of $3 billion to its 50 largest creditors. The weekend’s suspension of all trading and withdrawals by the Japanese cryptocurrency exchange<\/a> Liquid, which FTX purchased in March, raises the possibility of additional spread.<\/p>\n\n\n\n

Genesis’ suspension of withdrawals last week fueled rumors that parent business Digital Currency Group would declare bankruptcy. Traders are frightened by the news.<\/p>\n\n\n\n

Researchers found that as traders withdrew from the market, “trading volumes on top centralized exchanges more than halved from the week prior, plummeting to $100 [billion].” The highest average weekly drops were recorded by Huobi and Bitfinex, at 82% and 75%, respectively.<\/p>\n\n\n\n

Over the last few months, observers noted that Binance’s weekly trade volumes stayed consistently around $80 billion, most likely as a result of its aggressive fee reduction.<\/p>\n\n\n\n

According to Kaiko researchers, decentralized exchange tokens are down 16%, outperforming bitcoin somewhat.<\/p>\n\n\n\n

Analysts noted that the token of the decentralized derivatives exchange dYdX increased by 18%, indicating that the competition on the derivative markets to fill the void left by FTX is intensifying. “The risk-off shift in sentiment has had a significant impact on DeFi projects, which are down 25%.”<\/p>\n","protected":false},"excerpt":{"rendered":"

According to new study from Kaiko, the so-called “Alameda Gap” in cryptocurrency liquidity on centralized exchanges is beginning to narrow owing to Binance. Early this month, Alameda Research, the hedge fund division of Sam Bankman-since-defunct Fried’s FTX, stopped trading, which resulted in a sharp decline in the depth of the cryptocurrency market. According to a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[6,8,5,11,9,10,7,13,12,14],"class_list":["post-51","post","type-post","status-publish","format-standard","hentry","category-crypto","tag-binance","tag-bitcoin","tag-crypto","tag-cryptocurrency","tag-digital","tag-investment","tag-market","tag-metaverse","tag-mining","tag-nft"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/posts\/51","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/comments?post=51"}],"version-history":[{"count":1,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/posts\/51\/revisions"}],"predecessor-version":[{"id":52,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/posts\/51\/revisions\/52"}],"wp:attachment":[{"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/media?parent=51"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/categories?post=51"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arialvoyager.com\/wp-json\/wp\/v2\/tags?post=51"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}