72% of Ethereum liquidity is controlled by five exchanges
72% of Ethereum liquidity is controlled by five exchanges
The collapse of FTX has led to a redistribution of Ethereum liquidity in the cryptocurrency market. The lion's share of ETH liquidity in the order book is now concentrated on five cryptocurrency exchanges.
Binance, Bitfinex, OKX, Coinbase, and Kraken hold 72% of Ethereum liquidity, according to a report by Kaiko, a leading provider of digital asset data.
The report showed that the remaining 28% of ETH's liquidity comes from the reserve wallets of 41 cryptocurrency exchanges.
The statistics also show that liquidity is not only accumulating on a few exchanges but is also moving out of the U.S. The market share of exchanges offering services in the U.S. has dropped to 40%, down from 54% before Terra collapsed last May.
Global venues are benefiting from regulatory restrictions by attracting market makers who don't want to be bogged down in uncertainty, Kaiko stated.
Analysts also expect liquidity to continue to consolidate into a few exchanges in the future, and for all assets, not just ETH.
We previously reported that OKX has stated an increase in cryptocurrency reserves.
