The crypto market is experiencing a resurgence, with increased trading volumes and restored market depth for BTC, ETH, SOL, and XRP. To address the limitations of using market cap alone to measure a token's value, Kaiko Research introduced an asset liquidity ranking. However, it found that very few large-cap tokens have liquidity rankings that closely match their market cap, with outliers like LEO and HYPE having misleading liquidity statuses. Factors considered in Kaiko's ranking include market depth, number of liquid exchanges, bid-ask spread, and trade volume. The discrepancies observed in spreads are likely influenced by exchange fee structures and competition among liquidity providers. The increase in on-chain trading activity suggests an emerging trend of less concentration in the crypto market and potentially more liquidity flowing into altcoins. However, more than half of the top 50 tokens still struggle to attract significant volume. In the short term, high trading activity relative to available liquidity could cause price instability. Kaiko Indices launched the Kaiko EAGLE Index to capitalize on the US momentum and growing demand for crypto-related infrastructure.



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