The big news of the crypto industry is that about eight platforms accounts are nearly in 92% depth. This is made through any of the bids and asking for less than 10% of the mid prices along with 90% of the volumes.
According to Kaiko Binance (the largest crypto exchange) statements, This year accounted for more than 30% of the global market depth along with 60% of the worldwide trading volumes.
Along with Binance in the list coin base, Huobi and OKX are also included. There are hundreds of new crypto exchanges according to the trader’s reports many of them find negligence and without any trading.
Clara Medalie and Kaiko’s Dessislava Aubert are clearly stated in a note.
“Highly concentrated crypto markets are both a good and bad thing. There is undoubtedly a shortage of liquidity, which when spread thin across many exchanges and trading pairs can exacerbate volatility and disrupt the price discovery process,”
“Natural market forces have inevitably led to increasing concentration of this liquidity on a handful of platforms, which benefits the average trader. However, highly-concentrated crypto markets can create points of failure for the industry (ex: the FTX collapse),”
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News Source: https://shorturl.at/giBQ7
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