The liquidity of Ether on US exchanges has decreased by up to 40% since the introduction of Ether exchange-traded funds (ETFs) in July 2024. This decline in liquidity is concerning as it makes the market more sensitive to large orders and increases price volatility. The ETFs have also experienced mixed results, with some seeing outflows and others seeing inflows. Overall, the introduction of ETFs has not improved liquidity in the Ether market as expected. This lack of liquidity poses challenges for traders and investors, as slippage increases and execution prices become costlier. The decline in liquidity may also discourage institutional investors, leading to a vicious cycle of even lower liquidity and prices. Currently, Ether is trading at around $2,258, down over 4% in the past 24 hours. The wider cryptocurrency market is also under stress, with major altcoins experiencing losses. Market participants will now be observing how potential interest rate cuts by the Federal Reserve will impact liquidity and trading activity in the future.



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