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Liquidity Struggles Plague Crypto Markets Amid Banking Upheaval

March 24, 2023


Liquidity concerns in the cryptocurrency markets have been growing, and recent collapses in the banking sector have only served to exacerbate an already precarious situation. Analyst Conor Ryder from Kaiko Research addressed this issue in a recent blog post, examining market depth, spreads, slippage, and volumes as key indicators of liquidity in the crypto markets.

According to Ryder’s analysis, the closure of the SEN network and Silvergate’s Signet payment network — both crucial for market makers in the space — has further strained liquidity. His examination of market depth shows that neither Bitcoin nor Ethereum has seen improvements in native units, with liquidity levels at their lowest in 10 months.