Bitcoin
$57,699.74+0.73%
Ethereum
$2,939.90+2.31%
Binance Coin
$554.08+0.65%
Solana
$133.20+10.06%
XRP
$0.51373441+5.27%
Dogecoin
$0.12859064+3.75%
Toncoin
$4.79+0.51%
Cardano
$0.44812662+4.14%
Shiba Inu
$0.00002206+5.37%
Avalanche
$32.78+4.92%
Tron
$0.12232712+3.18%
Polkadot
$6.95+8.87%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Countdown to Consensus 2024The largest and longest running event that covers all sides of Crypto and Web 3
27
DAYS
02
HR
10
MIN
33
SEC
Market Analysis

Bitcoin Cash Sees Biggest Liquidity Jump in Q3, Bitcoin and Ether Lag: Kaiko

Liquidity refers to market's ability to absorb large orders at stable prices.

Omkar Godbole
By Omkar Godbole
AccessTimeIconOct 11, 2023 at 6:34 a.m. UTC
Updated Oct 11, 2023 at 7:24 a.m. UTC
Splash (Janeke88/Pixabay)
Splash (Janeke88/Pixabay)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto traders anticipating market volatility and looking for the best alternative cryptocurrencies (altcoins) may want to consider bitcoin's (BTC) offshoot, bitcoin cash (BCH).

That's because, according to Paris-based crypto data provider Kaiko, Bitcoin cash saw the most improvement in market liquidity during the third quarter.

Liquidity refers to the ability of the market to absorb large buy and sell orders at stable prices. The greater the liquidity or market depth, the lower the slippage – the difference between the price a trader expects to pay and the price they actually pay – and the easier it is for large traders to execute big orders.

Kaiko's liquidity rankings are based on market depth measures, bid-ask spreads, volumes from "tradable" exchanges. Overall, there has been a broad-based decline in market liquidity since Alameda Research went bust in November last year.

BCH tops the list, with AVAX registering highest liquidity drain. (Kaiko)
BCH tops the list, with AVAX registering highest liquidity drain. (Kaiko) (Kaiko)

The chart shows bitcoin cash's market liquidity improved by over 10% since the second quarter, outshining other prominent altcoins and market leader bitcoin.

Bitcoin cash prices fell 23% to $234 in the third quarter, marking a pullback from the second quarter's 145% surge. The 17th largest cryptocurrency by market value can be traded on prominent centralized exchanges like Binance, Coinbase, Bitstamp and institutional-backed crypto exchange EDX Markets.

Stellar's XLM, TRON's TRX, and Ethereum Classic (ETC) also witnessed an improvement in liquidity conditions. Bitcoin, Ether (ETH), XRP, an Dogecoin (DOGE) registered no change, while BNB Chain's BNB, OKX exchange's OKB, and Toncoin (TON) saw a decline in liquidity.

"TON had the worst underperformance [relative to its market cap], as most of its volume is on HTX, which was removed for suspected artificial volumes; the token was not considered liquid on any exchange," Kaiko said in the quarterly report.

Overall, bitcoin remained the most liquid cryptocurrency, validating its appeal as the crypto market safe haven.

Edited by Parikshit Mishra.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole
Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Follow @godbole17 on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.