The crypto currency market is re -moving with its recovery after the FTX collapse. BTC, ETH, SOL, Pepe and XRP in large volume assets such as market depth and operations increased, while the latest report published by Kaiko Research, the market value and liquidity between the fall.
Findings that draw attention from Kaiko research
After the collapse of FTX, Kaiko Research developed a sorting system that only reveals that the real value of a token cannot be understood only over its market value. This ranking helps to identify token with low liquidity, although the market value is high. According to Kaiko’s data, BTC, ETH, SOL and XRP, liquidity and market value are the most compatible assets as assets. However, the liquidity rankings of token, such as Leo, WBTC and Hype, do not coincide with market values.
One of the main reasons for this difference is that Leo is traded in only seven markets, and that a large part of Hype is locked and therefore there is actually a small number of tokens in the market. Kaiko Research’s sorting system contains five basic factors that affect liquidity:
- 1 %and 0.1 %market depth,
- Number of liquid stock market,
- Purchase-sale difference (bid-ask spread),
- Trade volume.
Although these factors are often associated with each other, the difference in purchase and sale may show significant deviations in some cases. For example, XRP, Pepe and LINK’s purchase-sale difference was wider traveling than liquidity rankings, while DOME, RNDR and Stock Exchange tokens performed BGB (Bitget) and GT (Gate.io) more positively. Kaiko says that these differences are caused by the competition between commission structures between the stock markets and market makers.
Does a new trend start?
The operations on the chain are increasing and this is a self -feeding cycle by enabling new market makers to enter the sector. Although BTC remains the leadership of trade volume, altcoins such as SOL and XRP also increase the market share. However, it is stated that the current liquidity situation of the market is still under development. The fact that half of the 50 largest 50 token does not catch an average daily volume of 200 million dollars shows that the market has not yet settled.
Low liquidity can cause price volatility compared to excessive trade volume. In this context, the volume-liquidity ratio, which measures the ratio of transactions to the market depth, offers important clues about price fluctuations. After the presidential elections in the US in November, there was a mobility in the financial markets. This also reflected in the crypto currency markets and enabled BTC to exceed 105 thousand dollars.
