In August, crypto trading volumes declined by 11.5% to $2.09 trillion due to a drop in volume despite positive news in the crypto industry, such as the potential approval of an ETF.
Liquidity in Crypto Markets Highly Concentrated Among Eight Exchanges A recent report by cryptocurrency researcher Kaiko reveals that crypto trading liquidity is highly concentrated among eight exchanges, with Binance accounting for over 30% of the market share and more than 60% of worldwide trade volumes this year.
This high concentration of liquidity has garnered attention from crypto analysts, as thinner trading volumes can result in more significant price fluctuations.
According to Kaiko, there can be both positive and negative effects on the market.
On the one hand, it can lead to better liquidity for traders, which can improve the overall market experience, but it can also increase the risk of market disruptions and points of failure, as demonstrated by the collapse of FTX.Volatility on its way back to the crypto markets Bloomberg recently
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